You Couldn't Short High-Flying Tilray Even If You Wanted To

You Couldn't Short High-Flying Tilray Even If You Wanted To

(Bloomberg) -- Want to go short on the summer’s hottest stock?

Good luck.

The cost of financing a short position for Tilray Inc., a Canadian cannabis company, has shot up to 370 percent according to financial analytics firm S3 Partners LLC. That’s 336 percentage points higher than was seen as recently as the end of August. The company’s stock price is up a comparatively paltry 58 percent in September.

Tilray traded over $100 on Wednesday in New York. At that price, it would cost $370 dollars a year to borrow a single share to initiate a short position. Short interest in the company as a percent of float has remained stable near the 18 percent level since the latter half of August.

The lending rate for Tilray shares is more than 230 times as expensive than that of Tesla Inc., another favorite target of short-sellers.

©2018 Bloomberg L.P.

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