Misleading Investors over the Patent Cliff

Soren Aandahl of Blue Orca Capital makes the short case on FMC Corporation (FMC). Blue Orca argues that FMC has concealed from investors a recent string of stunning legal defeats around the globe that have enabled competitors to now launch generics at prices up to 80% below the price of FMC’s flagship insecticide product.  With the Company already suffering a drastic slowdown in revenues as a result of a global inventory glut, Blue Orca believes that this undisclosed tidal wave of generics, concealed from investors, will now crush FMC’s revenues, margins and cash flows and likely force a credit downgrade.