Beyond meat has hit the "short-squeeze trifecta" as loan fees continue to push
Beyond Meat Inc. is now the most expensive stock to borrow among active short targets, as lending fees continue to skyrocket.
Shares of Beyond Meat
BYND, + 21.24%
who make plant-based meat alternatives, have jumped 69% in the last two trading sessions, but short sellers are still hungry for the opportunity to bet against the red heat stock. Borrowing costs on existing shorts reached 134% in Monday's season, according to financial technology and analytics firm S3 Partners, and could increase 1[ads1]50% by the end of the week.
Earlier: Shorting Beyond Meat stock is over-priced
Short-term interest rate stands at $ 814 million, or 5.87 million shares short-circuited, representing more than 50% of Beyond Meat & # 39 ; s float. Beyond Meat is the sixth largest card game in the domestic food and meat industry, but bears are down $ 574 million in mark-to-market losses as stocks continue to climb. The shares are up 570% from the 2nd of May issue price of $ 25.
See also: Beyond Meat Stocks rises after the first earnings report
"Beyond Meat has hit the short-squeeze trifecta, with hundreds of thousands of shares of recalls affecting the street; The share price ranks 69% in just two days, "wrote Ihor Dusaniwsky, CEO of S3, in a report late on Monday.
The company has the potential for a "Tesla-esque" Situation on their hands, said Dusaniwsky, whose shorts do not begin to cover their positions soon. Thus, he believes that only long-term shareholders would make a "lifestyle decision", rather than just an investment call, through their equity ownership. For short sellers, bearish bets can represent "more of a test of conviction and principle" than a search for immediate profits.
But it remains to be seen whether the Beyond Meat Shorts will have the same "Teflon" type for Tesla Inc.
TSLA, + 4.10%
shorts. "There is a very good chance that there will be a short-term squeeze in the near future," Dusaniwsky wrote. "Without extra or influential short side activity possible, Beyond Meat's share price should continue its upward path with very little resistance."
