ASP Isotopes (ASPI) stock is plunging today after short-selling firm Fuzzy Panda published a short report and revealed a bet against ASPI stock. The isotope enrichment technology company claims to serve the medical, semiconductor, and green energy sectors. But according to Fuzzy Panda’s new report, ASP Isotopes is guilty of using outdated equipment and paying for stock promotion. ASPI stock has been sinking all day as the report’s allegations raise questions about its operations and growth prospects.
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What’s Happening with ASPI Stock Today?
As of this writing, ASPI stock is down 20% and looks primed to continue declining. After a week of slight momentum but little overall growth, shares plunged this morning, most likely due to speculation surrounding the Fuzzy Panda short report, which makes serious allegations against the company. Shares remain deeply in the red for the past five days and are currently down 16%. This performance is
One serious accusation that the report makes is that ASP Isotopes is linked to Barry Honig and John Stetson, both of whom have been accused by the U.S. Securities and Exchange Commission (SEC) of being part of an illegal stock market manipulation scheme dating back to September 2018. Fuzzy Panda alleges that “Honig’s family and friends are tied to a paid stock promotion in Uranium,” with the stock being ASPI.
The short report’s authors also state they have spoken with “former executives from customers and competitors” of ASP Isotopes, who allege that the company is using old, uneconomical technology in its operations that compromise its growth prospects. Additionally, they claim that the company lacks a Nuclear Regulatory Commission (NRC) license to enrich uranium. As ASP just released a statement today announcing that it has completed the construction of its Silicon-28 Enrichment Facility, that allegation could have severe implications for ASPI stock if it is true.
Is it Time to Sell ASPI Stock?
Since only one Wall Street analyst follows ASPI stock, it is hard to properly assess which rating it deserves based on expert opinions. That said, the TipRanks Technical Analysis tool suggests a Buy signal on the one-day timeframe, based on overall bearish sentiment.
Fuzzy Panda makes some damning accusations against ASP in the short report. While the latter has issued no statement in response yet, the report could easily lead to a federal investigation, as it accuses ASP of illicit activity. If a probe is announced, it will likely push ASPI stock down even further.
