NEW YORK (TheStreet) -- Shares of National Beverage (FIZZ) - Get Report were falling 11% to $41.37 on heavy trading volume Wednesday afternoon after Glaucus Research disclosed a short position in the company.
The short seller valued the owner of LaCroix sparkling water and other energy drinks at $16.15 per share compared to Tuesday's closing stock price of $46.48.
"FIZZ has become a faddish stock-market darling du jour, but records produced as part of recent litigation paint a darker picture and suggest, in our opinion, that FIZZ has achieved its remarkable history of financial performance in part by manipulating earnings," the firm wrote in a research report.
The Plantation, FL-based company either "has revolutionized the beverage business or it is falsifying its reported financial performance. We believe it's the latter," Glaucus added.
Glaucus noted that "suspicious details abound" and National Beverage reminds the firm of beleaguered pharma company Valeant Pharmaceuticals (VRX).
More than 2.36 million of National Beverage's shares changed hands so far today, above its average volume of 369,906 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: FIZZ