Are Major Listed Stocks Also Running Into Share Supply Chain Issues?

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A quick review of the SEC’s most recent Fails to Deliver report, more specifically at Nasdaq-listed Nutriband Inc. NTRB, which stood out at 798,988 shares failing to be delivered in the first two weeks of 2022.

This may not seem like a groundbreaking number but considering the DTC (Depository Trust Corporation) share count is approximately 2.2 million shares for Nutriband and an officially registered short position of 208,158 shares, it is quickly approaching almost 50% of the DTC available shares — either short or naked short with the fails to deliver dominating. If Amazon.com Inc. AMZN Prime had such a delivery record, they might have never made it beyond the pink sheets.

Fails to Deliver, short selling, and naked short selling have had their heyday in the past year. Last  January stock market history was made as Gamestop Corporation GME and Blackberry Limited BB surged on historic volume, as traders believed the shorts were pigging out. They were right and shorts became vulnerable to a squeeze.

These stocks and others receiving traders’ attention for large short positions surged until stock halts and several of the major trading platforms decided at the resumption of trading these stocks would be restricted to non-margin trades, or buying limited as volume hit unprecedented levels.  Is Nutriband Inc. the next potential victim of failures to deliver, or could a short squeeze be in the cards, only time will tell? 

On a series of breakthrough press releases, patent grants, and a stock buyback announcement over the last two months the stock had surged.  Hopefully, for Nutriband history will play out fairly, after all, when one makes a purchase in life, pays the postage, delivery is expected and should be facilitated.   

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This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.