Shares of Stamps.com Inc. (NASDAQ:STMP) plunged more than 5% in morning trading before recovering somewhat after noted short-seller Marc Cohodes tweeted the following, ‘STMP is a scheme and I think the Insider Selling is the Frosting on the Cheesecake’. Although he was/is a chicken farmer, Cohodes has some major pull on Wall Street due to his past experience in the hedge fund business, particularly on the short side where he has exposed various suspect accounting practices. Cohodes might not be alone in his bearish sentiment either. According to the latest numbers, around 23.61% of Stamps.com shares are short.
Despite the skepticism, shares of Stamps.com have done rather well over the past four quarters, rallying over 15% before today’s action.
What Does The Smart Money Sentiment Say?
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According to our database of 742 elite funds, smart money sentiment around Stamps.com has been stable. 31 elite funds had a bullish position in Stamps.com Inc. (NASDAQ:STMP) at the end of December, unchanged from that of the previous quarter.
The Bottom Line
Stamps.com Inc. (NASDAQ:STMP) shares have fallen sharply intra-day due to a short seller tweet that hurt sentiment. For more reading, check out ‘11 countries with the fastest internet speeds in the World‘.