The Canadian stocks on our list have seen the largest percentage change in people covering their short positions
SmallCapPower | September 2, 2020: Investors who want to make money if a stock price falls can sell a security short – borrow shares from their broker, sell them, and eventually buy those shares back, hopefully at a lower price. Brokers do charge borrow fees for this privilege, which can be quite steep depending on the quality and popularity of the shares being loaned. Today we have filtered through and found three Canadian stocks with the largest decreases in short positions as of August 24, 2020. This means these speculators don’t believe these shares will fall further and have bought back the stocks to cover their short positions.
*Returns are based on closing stock prices as of September 1, 2020
Waste Connections, Inc. (TSX:WCN) – $130.91
Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets in the United States and Canada. Through its R360 Environmental Solutions subsidiary, Waste Connections is also a provider of non-hazardous oilfield waste treatment, recovery and disposal services in several of the most active natural resource producing areas in the United States, including the Permian, Bakken and Eagle Ford Basins. Waste Connections serves more than seven million residential, commercial, industrial, and exploration and production customers in 42 states in the U.S., and six provinces in Canada. The Company also provides intermodal services for the rail haul movement of cargo and solid waste containers in the Pacific Northwest. RBC Capital Markets said WCN’s core defensive characteristics are: an industry-leading growth profile; robust and sustainable free cash flow (FCF) generation and; a top-notch management team. Waste Connections stock has a current dividend yield of 0.8%. WCN has seen its short positions decrease 38.2% during the past month.
Algonquin Power & Utilities Corp. (TSX:AQN) – $18.24
Algonquin Power owns a portfolio of long-term contracted wind, solar and hydroelectric generating facilities, representing over 2 GW of installed capacity and more than 1.4 GW of incremental renewable energy capacity under construction. Through its business groups, the Company provides rate-regulated natural gas, water, and electricity generation, transmission, and distribution utility services to over 805,000 customers. It also owns regulated water and energy utilities in the United States through Liberty Power and Liberty Utilities. Liberty Power owns a direct or indirect equity interest in more than 35 clean energy facilities. Algonquin Power has approximately US$11 billion of total assets. On July 30, 2020, Algonquin announced an agreement with Chevron Corporation to co-develop renewable power projects. AQN has a current dividend yield of 4.5%. Algonquin Power has seen its short positions fall 32.8% during the past month.
First Majestic Silver Corp. (TSX:FR) – $15.76
First Majestic Silver is a mining company focused on silver production in Mexico, owning and operating the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine. Production from these mines is projected to be between 11.0 to 11.7 million silver ounces, or 21.4 to 22.9 million silver equivalent ounces in 2020. First Majestic Silver has seen its short positions decreased 21.6% during the past month.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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