The Canadian stocks on our list have seen a jump in percentage of short sales during October
SmallCapPower | November 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 identified two Canadian stocks that have seen a surprising jump in percentage of short sales during October, which could be a contrarian indicator as any good news could create a short squeeze that would propel the stock price higher.
*Returns are based on closing stock prices as of October 30, 2020
Boralex Inc. (TSX:BLX) – $38.75
Boralex focuses on developing, building and operating renewable energy power facilities located in Canada, France, UK and U.S. The Company has experience in four power generation types: 1) wind; 2) hydroelectric; 3) thermal; and 4) solar. Boralex has an installed capacity of 2,055 MW and is France’s largest independent producer of onshore wind power. The Company announced recently the appointment of a new President and Chief Executive Officer, effective December 1, 2020. BLX stock is currently yielding 1.7% and has seen a 68% increase in short sales during October.
- Year-to-Date Return: 62%
Thomson Reuters Corporation (TSX:TRI) – $103.58
Thomson Reuters is a provider of business information services, with products that include information-enabled software and tools for legal, tax, accounting and compliance professionals combined. It also owns Reuters, a global news service. Bloomberg reported recently that Thomson Reuters is exploring the sale of its 50% stake in 3 Times Square, its Manhattan hub. TRI stock is currently yielding 2% and has seen a 32% increase in short sales during October.
- Year-to-Date Return: 14%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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