Andrew Left.Bloomberg
- TransDigm Group is an airplane-parts maker that counts Boeing as one of its largest clients.
- The company’s growth depends on debt-fueled acquisitions.
- After it acquires a company that makes unique aerospace parts, it raises the price of those parts.
- On Thursday, the stock’s price closed at $251, but Citron Research thinks it should be hovering around $166.
Since his election to the office of the president of the United States, Donald Trump has spent much of his time tweeting threats to US companies that do things he doesn’t like.
There are a handful of things Trump doesn’t like about corporate America, but for our purposes, we’ll focus on just one: companies that charge the government entirely too much money.
In December, he hit Boeing, which makes the president’s Air Force One 747 jet, over this.
“Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order,” he tweeted.
It’s his jet, so we suppose he can tweet about it, but he should know that for weeks, the short sellers on Wall Street — investors who bet on a decline in share prices — have been whispering about a company that they say has a firm hand in making all things Boeing so expensive.
Roll-up
It’s airplane-part manufacturer TransDigm Group.
On Friday, one of these short sellers, Andrew Left of Citron Research, published a report outlining how it inflates prices in its sector and comparing it
Article source: http://uk.businessinsider.com/transdigm-group-targeted-by-short-sellers-andrew-left-2017-1