China Education Alliance, Inc. (CEU) is nosediving on heavy volume. More than 3.4 million CEU shares have already traded hands. The stock is currently at lows of the day as it prints the tape at $2.41, a loss of more than 45%, making it the biggest percentage loser on the day.
The ticker’s weakness follows a negative report from Kerrisdale Capital which said that “CEU is fabricating its SEC financial statements and that the company’s revenue and profit are highly overstated in its SEC filings”. Kerrisdale also said that China Education is “mostly a hoax.”
CEU currently trades at a trailing P/E of 4.46, a forward multiple of 3.16 and a PEG of 0.30.
Update: ticker halted, news pending.