September 28, 2016 / 4:51 PM / a year ago

BUZZ-National Beverage fizzles out after Glaucus note

** National Beverage shares slide nearly 12 pct, hit 5-mth low at $41.03 before paring losses; last at $41.93

** Glaucus Research said it is short the stock, and conservatively values shares at just $16.15

** Glaucus also said records from recent litigation paint a “darker picture” and suggest co has partly achieved a remarkable history of financial performance by manipulating earnings

** The firm cited the alleged CEO admission of earnings manipulation and fraud in an un-redacted complaint by a former attorney for FIZZ CEO and Chairman Nick Caporella

** Glaucus also points to a refusal by the CEO to allow a potential acquirer to perform adequate due diligence in 2014, which may have contributed to that deal being squashed

** Firm said situation is reminiscent of Valeant in which valuation is difficult when belief exists that management may manipulate financials but the co still possesses some decent assets

** FIZZ breaking down technically, closed below its 200-DMA on Monday for the first time since Jul 2015

** Only one analyst covers the co, according to Thomson Reuters data, with a “hold” rating, and $55 PT

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