A battleground stock for Wall Street's short sellers is getting hammered

RepresentativeRo Khanna (D-CA) wrote a letter to the inspector general of the Department of Defense, requesting that he look into TransDigm Group, a controversial airplane-part manufacturer and supplier of companies like Boeing.The stock is down over 6% on the news.Khanna's letteraccuses the company of "waste, fraud and abuse in the defense and industrial base." He called the company a "hidden monopolist" that engages in "unreasonable" pricing increases.On Wall Street, short sellers have been circling TransDigm for months alleging the same thing. Then in January, Citron Research accused the company of growing throughdebt-fueled acquisitions and eye-popping price increases, which it passes along to the government."TransDigm's business model is to aerospace as Valeant was to the pharmaceutical industry," Left wrote. "TransDigm acquires airplane parts companies (over 50 in total), fires employees, and egregiously raises prices. This business model has made them a dominant supplier of airplane parts to the aerospace industry while burdening its balance sheet with sky-high debt load: in fact, 6.5x EBITDA leverage."SEE ALSO:Wall Street has found a company that Donald Trump would love to beat up onJoin the conversation about this storyNOW WATCH: A $2.5 trillion asset manager just put a statue of a defiant girl in front of the Wall Street bull
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