Pursuits
Caesarstone Drops as Short Seller Spruce Point Targets Stock
- Short seller says company hiding rise in raw material costs
- Caesarstone shares have nearly quadrupled since March 2012 IPO
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Shares of Caesarstone Sdot Yam Ltd., the maker of quartz countertops, tumbled as much as 17 percent after short-seller Spruce Point Capital Management said the company is overvalued as it has been downplaying pricing pressures and a jump in raw material costs.
Caesarstone fell 7.1 percent to $44.61 on Wednesday in New York, extending a 37 percent decline since it lowered its 2015 sales forecast on an Aug. 5 earnings call. Shares of the Sdot-Yam, Israel-based company could be worth as little as $11, a discount of about 75 percent, Spruce Point said in a report published Wednesday on its website.