The Canadian marijuana stocks we’ve dug up have been shorted the most in the past 18 days
SmallCapPower | May 24, 2019: It is no secret that the cannabis industry is characterized by growth and bullish speculation, with regulations being loosened worldwide. However, many investors do not believe all the hype and have an intuition that the industry is overvalued. Today we look at the three most shorted Canadian marijuana stocks from the period of May 22-May 5.
*Share prices as at close May 22, 2019, data obtained from S&P Capital IQ
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Aurora Cannabis Inc. (TSX:ACB) – $11.55
Cannabis
Aurora Cannabis is a licensed distributor and producer of medical marijuana. The Company expects to have approximately 1,000,000 sq. ft. of licensed production space and produce 270,000 kg of cannabis annually. Aurora intends to convert several existing outlets, as well as develop new stores, for the sale of cannabis to the recreational market. The Company has signed supply agreements with 12 provinces and territories, making up over 98% of the Canadian population. On May 14, 2019, Aurora reported its third-quarter financial results. The results featured a loss per share of $0.16, missing analysts’ estimates by $0.06. Reported revenue was $65.1 million, increasing 20% from Q2 2019.
- Market Cap: $11.7 Billion
- YTD Returns: 69%
- Average 30 Day Trading Volume: 6.7 Million
- Shares Held Short: 41.8 Million
- Short Interest Ratio: 6.2x
Aphria Inc. (TSX:APHA) – $9.03
Cannabis
Aphria is one of Canada’s largest cannabis producers by licensed capacity. The Company’s Leamington greenhouse facility allows them to be a scalable, low-cost producer of medical marijuana. Aphria sells medicinal cannabis and its derivatives through retail sales and wholesale channels. On April 18, 2019, Aphria announced that its German subsidiary, Aphria Deutschland GmbH, has secured a cultivation licence for cultivation of medical cannabis in Germany.
- Market Cap: $2.2 Billion
- YTD Returns: 11%
- Average 30 Day Trading Volume: 2.3 Million
- Shares Held Short: 10.5 Million
- Short Interest Ratio: 4.6x
Canopy Growth Corporation (TSX:WEED) – $61.82
Cannabis
Canopy Growth is the largest cannabis company listed by market cap on the TSX and NYSE. The Company has the largest licensed production platform in Canada, with over 600,000 sq. ft. of production space. The Company has also secured the necessary agreements to export medicinal cannabis to Australia, Brazil, and Germany. On May 2, 2019, Canopy announced the acquisition of C3 Cannabinoid Compound Company, a Germany-based manufacturer and distributor of dronabinol.
- Market Cap: $21.3 Billion
- YTD Returns: 64%
- Average 30 Day Trading Volume: 2.1 Million
- Shares Held Short: 9.3 Million
- Short Interest Ratio: 4.4x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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