The Canadian stocks on our list have the highest short interest as a percentage of their float, meaning that they could be short squeeze candidates
SmallCapPower | June 14, 2021: A short squeeze is an uncommon event that triggers rapidly rising prices in a stock. For a short squeeze to occur the security must have an unusual degree of short sellers holding positions in it. Typically, there is a catalyst that can spark the short squeeze such as an unexpected announcement from the company or better than expected quarterly results. This causes the share price to jump higher unexpectedly, and the short squeeze begins. The condition plays out as a significant measure of the short sellers must buy shares to cut losses and exit their positions causing the share price to increase triggering a feedback loop. Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest. Today, we have identified four TSX-listed Canadian stocks with the highest short positions as a percentage of their float, meaning that they could be short squeeze candidates.
*Share price and other metrics as of June 11, 2021
Tucows Inc. (TSX:TC) – $94.41
Technology
Tucows provides network access, domain name registration, email, mobile telephone services, and other Internet services in Canada, the United States, and Germany. The Company provides these services primarily through an Internet-based distribution network of Internet Service Providers, web hosting companies, and other providers of Internet services to end-users. The Company operates in two segments: 1) Network Access Services, which includes mobile & fixed Internet access services, Internet hosting, and network consulting services; and 2) Domain Services, which includes wholesale & retail domain name registration services and portfolio services.
- Market Cap: $992.9M
- YTD-Return: -0.1%
- 1-Year Share Price Return: +18.8%
- 30-Day Average Trading Volume: 3,660
- Short Interest % Float: 8.6%
- Shares Outstanding: 10.6M
- Float Percentage: 80.5%
Maxar Technologies Inc. (TSX:MAXR) – $43.93
Aerospace and Defence
Maxar Technologies provides space technology solutions for commercial and government customers worldwide. The Company’s three segments include: Space Systems, Imagery, and Services. The Space Systems segment supplies space and ground-based infrastructure, along with information solutions. These products include satellites, antenna subsystems, surveillance solutions, and robotic systems. This segment also offers spacecraft and subsystems to the U.S. and Canadian government, and other customers for research and development missions. The imagery segment focuses on Earth imagery and radar data solutions for the U.S., Canadian, and other international government agencies. The Services segment provides geospatial information, applications, and analytic services for the U.S. government and commercial customers.
- Market Cap: $3,181.0M
- YTD-Return: -10.7%
- 1-Year Share Price Return: +131.7%
- 30-Day Average Trading Volume: 128,610
- Short Interest % Float: +8.1%
- Shares Outstanding: 72.4M
- Float Percentage: 97.7%
Tilray, Inc. (TSX:TLRY) – $24.18
Cannabis
Tilray is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.
- Market Cap: $10,819.3M
- 30-Day Return: +6.5%
- 30-Day Average Trading Volume: 1,949,190
- Short Interest % Float: 7.0%
- Shares Outstanding: 447.4M
- Float Percentage: 95.4%
Ceridian HCM Holding Inc. (TSX:CDAY) – $107.89
Technology
Ceridian is a global human capital management software company and one of the largest payroll services providers in Canada and the United States. Dayforce, the Company’s flagship product, is a cloud HCM platform, providing human resources, payroll, benefits, workforce management, and talent management functionality. Its platform is used to optimize management of the entire employee lifecycle, including attracting, engaging, paying, deploying, and developing people. Ceridian has solutions for organizations of all sizes.
- Market Cap: $16,115.3M
- YTD-Return: -20.6%
- 1-Year Share Price Return: +12.4%
- 30-Day Average Trading Volume: 8,100
- Short Interest % Float: 6.6%
- Shares Outstanding: 149.2M
- Float Percentage: 90.0%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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