Hannon Armstrong (HASI) Stock Plunges on Muddy Waters Short Report Hannon Armstrong (NYSE: HASI ) stock is falling lower by over 15% following the release of a short report by Muddy Waters Research . The report alleges that the company uses complex and misleading accounting strategies to the point where its financials are “effectively meaningless.” In addition, the activist short seller believes that Hannon’s 2021 generally accepted accounting principles (GAAP) income should actually be lower by $362.7 million, which would equate to a loss of $235.4 million at the midpoint. Muddy ultimately believes that most of Hannon’s income is both “non-cash and unrealizable.” Meanwhile, executives at Hannon have been selling out. They have disposed of $22.9 million of HASI stock in the past two years, of which $17.1 million is attributable to CEO Jeff Eckel. The firm also accuses Hannon of abusing the equity method investment (EMI) technique. The EMI technique is when a company records profits through its investment or ownership in another company. The method can be used when one company has significant influence over another company.