The Canadian stocks we’ve identified have the highest short positions as measured by short interest as a percentage of total stock float
SmallCapPower | February 11, 2021: Severe stock market volatility caused by Reddit-led short squeezes on companies such as GameStop have created one of the worse market environments for shorting stocks in a generation. Today, we have dug down and discovered three Canadian stocks with the highest short positions as measured by short interest as a percentage of total stock float. This could create a short squeeze, sending their stock prices sharply higher.
*Returns are based on closing stock prices as of February 10, 2021
First Majestic Silver Corp. (TSX:FR) – $21.48
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 12.5 to 13.9 million silver ounces or 20.6 to 22.9 million silver equivalent ounces in 2021. About 25% of First Majestic’s total float has been sold short.
- One-Year Return: 65%
Westshore Terminals Investment Corporation (TSX:WTE) – $18.57
Westshore Terminals operates a multi-user coal loading facility, which serves Canadian and U.S. shippers of metallurgical and thermal coal. The Terminal is located on land leased from the Vancouver Fraser Port Authority on a manmade island at Roberts Bank, British Columbia. Coal is delivered to the Terminal in unit trains operated by Canadian Pacific Railway, Canadian National Railway and BNSF Railway, and is loaded onto vessels that are destined for approximately 18 countries worldwide, with the largest volumes being shipped to Asia. About 22% of Westshore’s total float has been sold short.
- One-Year Return: 28%
Aurora Cannabis Inc. (TSX:ACB) – $23.96
Aurora Cannabis is a vertically-integrated and horizontally-diversified cannabis company. Its brand portfolio includes Aurora, Aurora Drift, San Rafael ’71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva CBD. The Company is the #1 Canadian medical cannabis platform by revenue and has experienced 40% quarterly growth internationally during the first quarter of 2021. Aurora Cannabis also has the #1 or #2 CBD brand in U.S. brick & mortar stores as ranked by Nielsen and IRI. About 21.5% of Aurora’s total float has been sold short.
- One-Year Return: – 3%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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