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.
Shares shorted has increased by 9.1 million shares in the 3rd & 4th quarters, for a 253% increase, and by 1.5 million shares in November, a 13% increase – virtually all of Novemberâ€™s short selling has occurred in the last week.
Shorts are making back the losses they incurred over the first three quarters when they were down $22 million in mark-to-market losses. They are up $25 million in the 4th quarter, and $10 million in November.
We are seeing strong short selling today, over 500k shares sold short, even as NBEVâ€™s stock price is slightly up today. It looks like short conviction is climbing and we should see continued price weakness in the stock if shorts continue to be active.