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What: Shares of Tangoe (NAS: TNGO) tanked today by as much as 24% after a recent bearish report was released by Copperfield Research, alleging that the company is a fraud.
So what: The report believes that Tangoe has "significantly misrepresented" its figures and has all the usual signs of accounting "shenanigans" that usually lead to scandals. Copperfield also says it is calling for a probe by the SEC to investigate the company's financials. Just last week the company was the victim of another short attack by TheStreetSweeper.org.
Now what: In both cases, the publishers of the reports disclosed holding short positions, with StreetSweeper closing the majority of its short position almost immediately after releasing its scathing report. Allegations in these types of reports deserve some attention, but I wouldn't rush to any conclusions so quickly. For example, Copperfield had also attacked Ebix last year, and StreetSweeper tackled Universal Display in December, both of which have since recovered those related losses and remain active official Fool recommendations.
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The article Why Tangoe Shares Tanked Twice Within 2 Weeks originally appeared on Fool.com.Fool contributor Evan Niu owns shares of Universal Display, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Ebix and Universal Display. Motley Fool newsletter services have recommended buying shares of Ebix and Universal Display. The Motley Fool has a disclosure policy.
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