What’s the Deal With These Stocks Getting Pounded?

Osiris Therapeutics, Inc. (NASDAQ:OSIR) shares are off by more than 14% this morning after Seeking Alpha contributor Richard Pearson published a negative article entitled, ‘Osiris: Aggressive Channel Stuffing, Accounting Irregularities Or Outright Fraud?’. In the blog post, Pearson said Osiris was channel stuffing and noted that past analysis has focused on multiple ‘accounting irregularities’. Pearson also noted that Osiris will likely lose its largest customer now that competitor MiMedx Group Inc (NASDAQ:MDXG) bought it. Because of those data-points, Pearson is calling for 70%-to-80% downside. Of the 730 elite funds that we track, there were ten with long positions in Osiris Therapeutics, Inc. (NASDAQ:OSIR) on September 30, valued at $52.8 million in aggregate.

Last but not least, SemGroup Corp (NYSE:SEMG) shares are 15.33% lower because of the plunging crude prices. SemGroup Corp (NYSE:SEMG), a publicly-traded midstream service company that provides energy companies with the means to move products from the wellhead to the wholesale marketplace, needs crude and gas prices to be healthy enough for the resulting demand from E&P’s to keep SemGroup profitable. Crude prices going lower doesn’t help with that objective.

26 elite funds owned 19.8% of SemGroup’s float as of September 30. That was up from 23 funds on June 30.

Disclosure: None