CBD Sector Momentum Squeezing Short Sellers Betting On FDA News
June 12, 2019 -- InvestorsHub NewsWire -- via www.nextbigticker.com -- CBD sector companies like Puration, Inc. (PURA), Kona Gold Solutions (KGKG) North American Cannabis Holdings, Inc. (USMJ) and Hemp, Inc. (HEMP) are all turning in strong operational performances based largely on their various hemp derived CBD offerings. All of them have substantial trading volume. All are also turning in strong PPS gains while fighting against clear short sellers betting against unanticipated CBD sector momentum. Now that short selling bet may end up further fueling CBD sector momentum.
When the FDA recently met to discuss CBD infusion into beverages and edibles and produced no initial specific next steps, short sellers hoped for a negative CBD sector stock performance reaction. The neutral FDA movement on CBD infusion however, did nothing to cool the sector and now the short positions that went into many CBD stocks may in turn help to fuel CBD sector momentum as short sellers are forced to cover.
PURA, KGKG USMJ and HEMP have all experienced recent short selling accounting for 50% or more of their daily trading volume. As the FDA meeting gets further and further in the rearview mirror, short sellers are bound to have to start covering.
See some of the short positions in PURA, KGKG, USMJ and HEMP reported below based on FINRA daily short sales data.
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