Shares of construction company Tutor Perini (NYSE: TPC) dropped as much as 10.8% in Wednesday trading, finally closing the day down 9.9%.
You can blame the bad news on Iceberg Research, which some call describe as a "tiny, secretive research shop," while others are not shy to deride it as a "short seller." According to
Iceberg describes a situation in which Tutor Perini's heavy debt load ($684 million, according to data from
Judging solely from Reuters' retelling of what was apparently contained in Iceberg's report, there's really no new news here, other than what was evident to anyone who looked at Tutor Perini's balance sheet before the report came out. As such, a 10% decline in stock price, all in response to one investor saying that it doesn't like what it sees at the stock, seems a bit of an overreaction. Although I'm no great fan of Tutor Perini at its current price of 17.4 times earnings, the stock is no different today from what it was yesterday.
Well, it is different in one respect: It's 10% cheaper.
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