Summary
MDXG shares are conservatively worth at least $8.09, almost 4x the current share price.
The chances of MDXG going bankrupt are remote given its strong, debt-free balance sheet and highly flexible cost structure.
The majority of MDXG’s sales are legitimate and sustainable. Our research indicates that a small portion of revenue was attributable to quarter-end channel stuffing, while widespread bribes/kickbacks did not occur.
MDXG’s products are among, if not the best, in an industry where competitors generate hundreds of $millions of revenue. Given this, the claim that MDXG’s sales are largely fraudulent appears far-fetched.
Given the current, more corporate-friendly administration and the fact that the government almost never kills companies, any future government fine is unlikely to push MDXG into bankruptcy.
Introduction
Since our founding in 2009, we've become known for our deep research into companies committing fraud, inflating financial performance, misleading investors and misappropriating shareholder capital.
Last year, we exposed financial improprieties at trucking company Celadon Group. In the wake of our report, Celadon fired its top executives, rescinded its previously issued financial statements and watched its stock drop over 90%. Celadon's shares were eventually delisted and both the SEC and federal criminal authorities launched formal investigations.
