It’s that time of year again. Historically during the spring months and into the summer cannabis stocks begin to slump. There are many potential reasons as to why this phenomenon occurs. Many believe in the “Sell in May and go away” theory. That theory suggests that investors begin to unload some of their positions in advance of the anticipated sell-off. Some sell stock in order to free up capital to pay their dreaded tax bills and other traders unload just to get a jump on the market downswing. Many of the elite professional traders will then go away on holiday until the market picks back up again.
Regardless of the reasons, investors must face this reality and make some tough decisions. Long term investors may decide to ride it out while looking to add cheap shares to their positions at lower levels as historically the good stocks have always rallied back. Traders way look to unwind some of their positions in advance of this decline and look to re-enter at lower levels during the summer months. Other more sophisticated investors may look to sell short and profit from these market corrections while others sit on the sidelines or panic sell into the downswing.
As we approach the end of the spring months we decided to do some digging and came up with a list of the top three Canadian cannabis stocks with the largest open short positions. In the event of a major market catalyst these three licensed producers could be great stocks to own should a large short squeeze take place.
Without further ado here is our list:
- Share price: $11.17 CDN
- Market cap: $11.3 billion CDN
- Shares short: 41.8 million
- Percentage of float short: 4.12%
- Shares outstanding: 1.01 billion
- Share price: $9.80 CDN
- Market cap: $2.2 billion CDN
- Shares short: 10.5 million
- Percentage of float short: 4.21%
- Shares outstanding: 250.7 million
- Share price: $59.89 CDN
- Market cap: $20.7 billion CDN
- Shares short: 9.3 million
- Percentage of float short: 2.69%
- Shares outstanding: 344.1 million
Move over Canopy. The world’s largest cannabis company is set to IPO in less than 30 days.
Get the full details here so you don’t miss out on the next potential 10 bagger.