EXp World Holdings Inc (NASDAQ:EXPI) shares closed down 5.97% Thursday at $17.48 after The Bear Cave's Edwin Dorsey issued a short report on the stock.
Dorsey points out that EXp shares are up more than 3,500% since going public in 2013. However, the company's rise has been met with "dubious accounting, regulatory snafus, an SEC subpoena, high insider selling and a questionable recruiting pipeline promoted by a prominent Scientologist," according to Dorsey.
He suggests that EXp is paying existing agents with stock compensation in order to earn fees from new agents and moreover, the company's growth has largely been fueled by this recruiting operation.
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EXPI Price Action: EXp has traded between $18.29 and $55.43 over a 52-week period. It closed at new 52-week lows on Thursday.
