Bleecker Street goes short Fitell, says ‘substantially overvalued’

Bleecker Street Capital published a short report on Fitell, saying its research indicates the company’s largest shareholder has “undisclosed ties to a vast web of stock promotions and scams.” In addition, recent evidence shows WeChat and WhatsApp stock promotion groups are promoting Fitell, the same groups that promoted Baiyu Holdings (BYU) before it dropped 78% over the last two days, Bleecker writes in a report on its website. The firm believes Fitell is “substantially overvalued and will soon join the legions of Chinese pump and dumps that decline substantially, seemingly out of nowhere.” The company has a $300M market capitalization supported by $5M of revenue from drop-shipping exercise equipment from China, Bleecker contends. Shares of Fitell are down 6% to $13.23 following the short report.