SFX Entertainment’s (NASDAQ: SFXE) stock price bounced back to normal on Thursday morning after seeing a sharp decline attributed to an article published by Seeking Alpha. The article entitled “SFX Entertainment: Playing House Music In A House Of Cards“ heavily critiqued the EDM-focused event promotion company. The price currently sits at $4.35 per share, a 23.6% increase from Wednesday’s low of $3.52 per share.
Seeking Alpha’s critique warned investors of imminent collapse due to Chairman and CEO Bob Sillerman’s failure to keep his promise to purchase stocks and the company’s purchase of $10 million of debt, and alleged misrepresentation.
Rich Tullo of Albert Fried & Co. promptly authored a note to investors reiterating his confidence in the company. SFX thereafter responded by announcing Sillerman’s acquisition of 575,000 shares of SFX stock in two transactions at an average weighted price of $4.91.