KIDS - OrthoPediatrics under pressure on bearish Culper report

Thinly traded small cap OrthoPediatrics ([[KIDS]] -7.7%) is under modest pressure in apparent response to a post on social media by Culper Research touting its bearish view.It claims, based on interviews with four distributors and two former executives, that the company is engaging in revenue-pumping scheme called channel stuffing, meaning that it is shipping excess product to distributors (excess inventory) and booking the sales, a disreputable tactic associated with tarnished med firms MiMedx ([[MDXG]] +0.9%), Valeant Pharmaceuticals (now Bausch Health Companies) and ArthroCare (acquired by Smith & Nephew in May 2014).Culper also cites the build-up in inventory disclosed by OrthoPediatrics, now 1,135 days versus less than 600 three years ago. [Note: at the end of Q3 the company disclosed $52.0M in inventory compared to $34.5M a year ago and $26.6M two years ago.]

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OrthoPediatrics under pressure on bearish Culper report