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transdigm A+ A- Написана на : 2017-05-18 23:38:05

TransDigm Group(airplane-part manufacturer and supplier of companies like Boeing)

The stock is down over 6% on the news.

Khanna's letter accuses the company of "waste, fraud and abuse in the defense and industrial base."

"hidden monopolist" that engages in "unreasonable" pricing increases.

On Wall Street, short sellers have been circling TransDigm for months alleging the same thing. Then in January, Citron Research accused the company of growing through debt-fueled acquisitions and eye-popping price increases, which it passes along to the government. 

Andrew Left:  "TransDigm -  aerospace  Valeant

 "TransDigm acquires airplane parts companies (over 50 in total), fires employees, and egregiously raises prices. This business model has made them a dominant supplier of airplane parts to the aerospace industry while burdening its balance sheet with sky-high debt load: in fact, 6.5x EBITDA leverage."