Shares of National Beverage Corp. FIZZ 0.11% stabilized on Thursday following an 18.8 percent decline in a matter of days, including an 8.2 percent drop on heavy volume on Wednesday. National Beverage produces discount sodas Faygo and Shasta, as well as energy drink Rip It and LaCroix sparkling water. Wednesday’s large drop came in response to a report by short seller Glaucus Research Group accusing the company of fraud.
Glaucus claimed that National management manipulates the company’s earnings. The short-seller pointed out that National has lower margins than its competitors, but still somehow manages a double-digit operating margin.
“Either FIZZ has revolutionized the beverage business or it is falsifying its reported financial performance,” Glaucus wrote. “We believe it’s the latter.”
On Thursday, National Beverage CEO Nick Caporella fought back against the allegations. In a statement, the company called the Glaucus allegations an “egregious attempt” to manipulate National’s share price.
“I would again caution fellow shareholders about reacting to the many false statements made yesterday and I assure all parties that the financial prospects of the Company are just as fundamentally strong today as the day before this self-serving attack by short sellers,” Caporella said in the statement.
National Beverage has also set up…
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