The Canadian stocks on our list have the greatest short interest as a percentage of the Company’s float as of September 25, 2020
SmallCapPower | October 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 that have the greatest short interest as a percentage of its float as of September 25, 2020. This is calculated by dividing the total amount of shares being sold short (betting the price will decline) by the total amount of shares on the market. This ratio is useful for gleaning market sentiment about whether or not a stock’s price will rise or fall.
Just Energy Group Inc. (TSX:JE) – $6.49
Just Energy is a provider of energy and utility services, including electricity, natural gas health, water quality and filtration devices, as well as utility conservation services, to residential and commercial customers. In July, the Company proposed a recapitalization plan, including a note exchange, in which it is expected to raise C$100 million in committed new equity, while the preferred shares and debt are converted to common stock, which is expected to reduce its overall debt by C$275 million. This Plan included a reverse stock split, in which shareholders received one new share for every 33 old shares held.
- Percentage of total float sold short: 37.6%
Cronos Group Inc. (TSX:CRON) – $6.63
Cronos Group has two wholly-owned Canadian licensed producers: 1) Peace Naturals Project Inc., a global health and wellness platform; and 2) Original BC Ltd., a recreational adult-use Canadian licensed producer that is located in Okanagan Valley, BC. During Q2 2020, Cronos reported revenue of US$9.9 million, a $2.2 million increase from a year earlier, while swinging to a loss of $3.0 million from a $4.1 million profit during the same period last year. The Company attributed the loss primarily to an inventory write-down of $3.1 million on dried cannabis and cannabis extracts.
- Percentage of total float sold short: 28.8%
Westshore Terminals Investment Corporation (TSX:WTE) – $14.86
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.
- Percentage of total float sold short: 24.7%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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