Muddy Waters questions eHealth revenue collection in renewed short attack

Carson Block's Muddy Waters Research issued another short report on eHealth, claming it will take the company nine years to fully collect the revenue it books today. Muddy said in a report posted on its website, "We do not believe the Company has the data or history to justify booking sales as far away as 2040, especially as EHTH has only been serving MA members in meaningful size for four years... In our view, EHTH is a stock promotion built on the back low quality (high churn) sales growth, reporting profits that do not properly match revenue to ongoing costs, and resulting in both the management and company issuing equity on the back of this short-termism and misrepresented business." Shares of eHealth are down $1.09 to $130.63 in morning trading. Reference Link