Intelligent Systems falls after second short report questions financials
Shares of Intelligent Systems are down after the company was the subject of a second short report in week. Following Aurelius Value's report on May 24, Grizzly Research posted a short report today on its website. Grizzly, which says it produces "differentiated research insights on publicly traded companies through in-depth due diligence," put a $5 price target on shares of Intelligent Systems. The stock in midday trading is down 17%, or $5.85, to $27.96. "We believe that Intelligent Systems Corp. has its employees set up or take control of undisclosed shell companies in Asia, who then partake in undisclosed related party transactions with INS intended to either round-trip revenue back to INS or siphon money out of the company," Grizzly said in its report. The firm believes "these material undisclosed related party transactions cast doubt on the integrity of INS's financial statements."