We are seeing stock loan recalls hitting the street in Cronos Group Inc (CRON US\CRON CN) stock today as well as increased short selling this morning. This means that stock loan supply is dwindling and stock borrow demand is increasing â€“ translation, higher stock borrow rates in the near future and minimal short side activity in the stock.
CRON US\CRON CN short interest is $1.20 billion; 26.09 million shares shorted; 11.25% of float; 10.50% stock borrow fee on existing shorts and 12.25% to 15.00% fee on new shorts.
The Cannabis Sector is down pretty much across the board this morning with the top ten most shorted stocks already up $85 million in mark-to-market profits.
With stock borrow supply running out, there will be minimal short side pressure in the Cronos in the future. If there is a sector wide cannabis rally you can expect Cronos to outperform since there will not be any shorts in size to offer any substantial resistance.
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Managing Director Predictive Analytics, S3 Partners, LLC
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