Carvana Co short interest is $718 million; 20.46 million shares shorted; 56.95% of its float; stock borrow cost on existing shorts is 2.15% fee and new stock borrows at 3.00% fee.
We‚Äôre seeing strong short selling yesterday and today and shares shorted is up 2.1 million shares for the year, +11.5%.
Spruce Point Capital management is short CVNA and has stated that the stock is a ‚Äústrong sell‚ÄĚ with 50% to 70% downside.
Stock borrow availability is starting to get scarce and stock borrow rates are starting to climb in response to the decrease in availability. If short selling continues to climb, stock loan rates will climb above 5% fee in the next few days, and near the 10% fee level if shares shorted increases by more than a couple of million shares.
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¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬† ¬†Managing Director Predictive Analytics, S3 Partners, LLC
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