Safety Shot (NASDAQ: SHOT) stock is down 25%. It’s easy enough to explain why this is so - insiders are selling stock into the recent price rise. Well, that’s OK, even if not quite what we’d like to see perhaps. After all, the company’s new product goes on general sale in the next couple of weeks. Those really confident about it would be retaining stock to benefit from the obvious price rise when it’s wildly successful, right?
But that’s not the market we’re using here. This is: “Safety Shot, Inc. (Nasdaq: SHOT) it has come to our attention that there are several disclosed short sellers publishing malicious defamatory, inaccurate articles about Safety Shot and its management in a willful attempt to scare SHOT investors out of their positions in hopes of getting them to sell their shares so they can then buy at a lower cost to cover their disclosed short position. Several of these groups are currently being sued in federal court for publishing these fraudulent articles on other companies….”
No, just no. Any management that rages against short sellers is simply wrong. Part of it is that short selling is just as much a part of the markets as long buying. The correct price is only reached when all have their say, obviously enough (in fact Robert Shiller gained his Nobel for pointing this out). It’s not just that - the market as a whole looks at management that do that and concludes that they’ve not a clue and therefore mark the stock down.
Safety Shot stock price from Google Finance
But there’s more to it than that. There is that short seller report from Capybara, yes. But now think of what Safety Shot is actually offering: “Safety Shot Inc. is introducing a groundbreaking beverage to swiftly squash a buzz. The "Safety Shot" is crafted to accelerate alcohol detox and promptly plummet blood alcohol content (BAC) in record time. The company says the beverage, created by industry experts and patented, is slated for a direct-to-consumer launch in December 2023.” Ahahaha. Even, snigger. That’s not going to last through the first lawsuits of people who took it and still got arrested for drunk driving, is it?
And more than that? “This prospectus relates to the resale or other disposition from time to time in one or more offerings of up to 1,978,796 shares of our common stock, par value $0.001, by the selling stockholder named herein.” Oh, right. So an extant shareholder is registering to be able to sell stock *ahead* of the product launch? Ah, right, so we believe in the success of the product launch, right?
This is even before we get to the main claim: “In August 2023, the Company acquired certain assets of GBB Drink Lab Inc which included the blood alcohol detox drink Safety Shot, an over-the-counter drink that can lower blood alcohol content to allow recovery from the effects of alcohol at a rate faster than would occur normally.” Something we don’t believe in the slightest. That would be a startling medical breakthrough if it were true and we don’t believe startling claims like that, not without some decent lab evidence we don’t.
The full short report is here. We suggest Safety Shot will go lower, much lower. It’ll be even worse if people actually take it and rely upon it to then try to drive in our opinion.
