|Recently read that GrowGeneration (GRWG) was the victim of a negative report issued by Hindenburg Research, a research firm that specializes and discovering negative news about companies, such news being a tremendous benefit to short-sellers.|
Not sure what the current negative news might be but suspect that it has something to do with CEO Michael Salaman’s prior involvement with Skinny Nutritional, where he was CEO and President from 2000 to 2014 – over six years ago. It would seem that whatever the problems were, remedial action should have occurred since then.
All of that notwithstanding, what seems to be overlooked by Hindenburg is the revenue growth achieved by GRWG, as illustrated below. There are very few companies that can consistently achieve 100% year-over-year quarterly revenue growth. Admittedly, at some point in the future that rate of growth will have to diminish, but according to the GRWG earnings transcript, that is not likely to occur in their next quarterly report.
Select here for the GRWG quarterly revenue growth chart.