tiprankstipranks
Spruce Point issues ‘Strong Sell’ on Aegon, sees 25%-50% long-term downside
The Fly

Spruce Point issues ‘Strong Sell’ on Aegon, sees 25%-50% long-term downside

Spruce Point Capital Management issued a report outlining why the firm believes and estimates that shares of Aegon (AEG) “face up to 25% – 50% potential long-term downside and market underperformance risk.” Spruce Point stated: “Aegon’s s primary distribution arm, World Financial Group – WFG, operates an aggressive multi-level-marketing business, which has faced allegations of being a pyramid scheme.” WFG generates a signification portion of Aegon’s results and exposes the company to high business risks, and Spruce Point contends that its concerns regarding WFG are supported by complaints received via Freedom of Information Act, wherein previous agents disclose criticisms regarding the company’s high-pressure tactics and cult-like behavior.

Pick the best stocks and maximize your portfolio:

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App