Canopy Growth Corp (CGC US) short interest is $1.29 billion; 26.39 million shares shorted; 11.38% of float; stock borrow is 13.65% bp fee. WEED CN short interest is $355 million; 7.28 million shares shorted; 3.14% of float; stock borrow is 12.40% bp feeÂ Canopy Growth is the Â is the most shorted stock in the Cannabis sector.
Short sellers have been covering some of their Tilray short positions over the last week. With shares shorted down 292k shares, -7.72%, as Tilrayâ€™s stock price declined by 14.24% over that same time period. Shares shorted are 3.49 million shares, $287 million of Short Interest. This is the lowest level of shares shorted since early December.
TLRY US\CN short interest is $286 million; 3.43 million shares shorted; 33.24% of the float with a stock borrow rate on existing short positions at 182% fee (per annum).
There is very little stock loan available in this name and there is not enough stock available for any large short sales.
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The mergers and acquisition activity in the Cannabis Sector continued today with Green Growth Brands Ltd. offering $2.1 billion in a hostile takeover of Aphria Inc (APHA). This follows Altria Incâ€™s announced $1.8 billion investment in Cronos Group (CRON); Constellation Brands purchase of 5.5% of Canopy Growth Corp (CGC); Molson Coors Brewing Coâ€™s joint venture with HEXO Corp (HEXO); and Anheiser-Busch Inbevâ€™s research partnership with Tilray Inc (TJRY).
Author: Ihor Dusaniwsky
Both Tilray Inc (TLRY US) and Aphria Inc (APHA US) were mentioned as attractive short plays at Whitney Tilsonâ€™s recent conference. Chris Brown of Aristides Capital LLC maintains that cannabis is in actuality a commodity business and therefore most cannabis related stocks are overvalued, and in the case of TLRY overvalued by over 40%. Fabriel Grego of Quintissential Capital expects â€śmassiveâ€ť asset write-offs at Aphria relating to South American company acquisitions which are â€ślargely worthless.â€ť
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The weeklong rally from last weekâ€™s lows has taken a bite out of the $93.7 billion of mark-to-market profits, +11.12%, short sellers have earned since the beginning of October. Over the last week the S&P 500 index increased by 3.31%, the Nasdaq by 4.3% and the Russell 3000 by 3.23%. The S3 Blacklight platform tracks over 8,000 U.S. domestic equity shorts worth over $825 billion, which incurred mark-to-market losses of $23.3 billion, or -2.86%, over the last week.
New Age Beverages Corp (NBEV US) short interest is $46.17 million, with 12.75 million shares shorted, for 24.30% of float.
Stock borrow fees are easing as more lendable inventory are hitting the street. Stock borrow fees averaged a 36% fee over the first three quarters of 2018, hit a 120% fee in late September, and averaged over a 46% fee in early November. They have now dropped to 27.69% fee. Average NBEV short interest for the year has only been $21 million, but those short sellers have paid just over $7 million in stock borrow costs.
Cannabis stocks rallied over 8% yesterday on euphoria that Attorney General Jeff Sessionâ€™s resignation would bode well for U.S. cannabis policy. Today, clearer minds prevailed and cannabis stocks gave back most of yesterdayâ€™s run-up when investors realized the likelihood that there would be short term legislative changes to federal cannabis policy was unlikely.
NBEV real-time short interest: Â Â 11.55 million shares short / 55.8% of float / $58.7 million at risk betting on a share decline.
New Age Beverages sells teas and water, but more notably announced recently, itâ€™s ready to launch cannabis-based drinks.