Unless you get all your news from TMZ, you’ve probably seen that the stock markets had a turbulent week. Though hopefully Wall Street is already on the mend, investors seem unsure where things are headed next.
But yesterday, financial information services provider Markit suggested there’s one industry that’s evoking a bit more consensus – the brewing industry. Unfortunately it isn’t good news for many of these brewers. Wall Street is betting with confidence that the stocks of mid-sized brewers are going to continue to tumble.
As evidence of their theory, Markit points to a few major statistics. First, short sellers – people who are essentially looking for a stock price to drop – have tripled their positions in brewers Carlsberg and Molson Coors. (Yes, these brewers are huge by most people’s standards, but they’re certainly not as big as companies like Anheuser-Busch InBev or SABMiller.) Yet, despite this, the Boston Beer Company (maker of Sam Adams) is currently the most shorted brewery worldwide. Finally, another mid-sized brewing company, Craft Brew Alliance, owners of brands like Redhook, Widmer and Kona, has seen its stock fall by nearly half in the past year, eliciting plenty of short interest over that time.