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Signet Blames Short Sellers for 'Targeted' Campaign

Jun 16, 2016 3:41 AM   By Rapaport News
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RAPAPORT... Signet Jewelers chief executive officer Mark Light hit out at short sellers who he claimed launched a “targeted attack” to drag down the diamond retailer’s share price, Bloomberg reported.

Signet stock plummeted more than 20 percent since a BuzzFeed report May 25 alleged, based on complaints from customers of Kay Jewelers, a Signet subsidiary, that diamonds the company took in for servicing had been “swapped” for lower-quality gems.

Compounding the jeweler’s troubles, James Grant’s influential investment newsletter on June 2 raised concerns over the extent to which the company uses its credit operations to boost sales. The report cited a short seller, according to Bloomberg.

Short sellers sell stock that they do not own with the intention of making a profit by buying it back later at a lower price.

Light (pictured) said Signet suffered a “targeted attack” by short sellers, who led an “orchestrated campaign” to amplify the controversy, Bloomberg reported.

“We have to make it right and get on top of social media to make sure that the other side of the story is told,” Light added.
Tags: kay, Kay Jewelers, Mark Light, Rapaport News, Signet, Signet Jewelers
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