FleetCor Technologies Inc (FLT) News

FLT new 52 week high

Anyone following this?

Citron correctly stated they were being investigated by Feds,
but stock is moving up?

.. company has a history of abusive tactics?


FleetCor Technologies, Inc. (FLT) Accused of Exploitative Business Practices

According to the complaint, FleetCor has marketed its fuel cards, charge cards that customers can distribute to vehicle drivers to purchase fuel and other transportation-related products and services, since at least 2014. FleetCor has enticed businesses to sign up for its fuel cards by making claims that it will allow customers to save money, provide fraud controls from unauthorized transactions, and do not require set-up, transaction, or membership fees. FleetCor failed to mention, however, that many small- and medium-sized business customers do not achieve the claimed per-gallon savings FleetCor advertised, that FleetCor's fuel cards permit unauthorized purchases of any type of goods available at a fueling site regardless of whether a customer selected "fuel only" status, and that after signing up, many customers are subjected to millions of dollars in unexpected fee charges. As a result of these exploitative business practices, many of FleetCor's customers have complained to entities like the Better Business Bureau and The Federal Trade Commission, leading to litigation against FleetCor that could potentially damage its investors.



https://www.marketwatch.com/press-release/shareholder-alert-robbins-llp-announces-fleetcor-technologies-inc-flt-sued-for-violating-federal-trade-commission-act-2020-01-02?dist=bigcharts

FleetCor defended by Wells Fargo against Citron short report
FleetCor Technologies (FLT +1.8%) recoups part of yesterday's 5% drubbing caused by Citron's negative report that called FLT a "predatory company."
The report said FLT generates 56% of its revenue from customers, rather than from merchants, while competitor WEX has a fee structure that generates only 12% of total revenue from customers.
Wells Fargo's Timothy Will defends FLT, reiterating his Outperform rating and setting a valuation range of $170-$180, saying WEX generated at least 34% of its consolidated revenue in 2016 from customers, including 39% within the fleet segment; although FLT’s figure is much higher, it represents a “more comparable mix to WEX.”
Will says that while FLT’s generated 44% more revenue per transaction in its fuel card business than WEX in 2016, “we believe the premium is explained by business mix and not company-specific fee structures.”

FleetCor -5% as Citron Research comes out negative
FleetCor Technologies (FLT -4.6%) after Citron Research issues a bearish report that says the company's stock price should sink to $100 "as the truth... becomes more apparent to regulators and its customers."
FLT is "a predatory company by design, whose core strategy is to methodically rip off its customers, using business practices and fees that are designed to deceive," according to the report.
Citron says competitor WEX (WEX -1.2%), which has a broader distribution gas station network, has customer fees that are only 12% of revenue, compared to FLT's fees which are a "staggering" 56% of revenue.

Looking good here

Looking good here.