Top Shorts Report: Taking profits in Paramount Resources

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Short sellers reduced their exposure to Paramount Resources in the first half of June as the stock put in new year-to-date lows. Nevertheless, that still left the stock as one of the most shorted as a percentage of its float in Canada. Jumping to the top of Top 10 table based on IIROC data as of June 15th is tightly controlled Stingray Group which has a relatively small estimated float. As such, we would be reluctant to read too much into the short positioning in that stock.

The other new arrival in the Top 10 is Automotive Property REIT which announced on June 12th a 7 million unit offering priced at $10.45 per unit in conjunction with a dealership property deal.

Top 10 Canadian Stocks Shorted as of June 15, 2019*
    Stock Shares Short %Float Change INK Signal
1 RAY Stingray Group 408,014 65.43% 20.82% Squeeze
2 POU Paramount Resources 7,272,084 25.78% -2.21% Squeeze
3 HLF High Liner Foods 3,641,457 17.68% 0.08% Bearish
4 GWO Great West Lifeco 27,438,705 12.58% -0.17% Squeeze
5 CJT Cargojet 1,417,402 11.68% 0.59% Bearish
6 ACQ AutoCanada 2,902,266 10.86% -0.18% Bearish
7 SSL Sandstorm Gold 18,370,533 10.60% 1.12% Bearish
8 APR.UN Automotive Prop. REIT 2,121,899 9.78% 1.11% Bearish
9 NOA North American Constr. 2,358,127 9.58% 0.12% Bearish
10 CHW Chesswood Group 844,464 9.46% 0.05% Squeeze

*Stocks trading over $1.00

Leaving the Top 10 this report are BTB REIT (Mixed; BTB) which closed a financing on June 14th and Bonterra Energy (Mostly Sunny; BNE) which saw shorts modestly reduce their exposure as the stock also set new YTD lows this month.

With shorts paring back positions in some big oil & gas favourites, perhaps it is sign that the worst is in for the Canadian oil patch. We will have more to say on that issue in our Monday market update which is delivered to Canadian Insider Research Club members early Monday morning. If you are not a member, consider joining here.

Two stocks with notable jumps in short positions so far this month are Burcon Nutrascience (Sunny; BU) and MediPharm Labs (Sunny; LABS). However, both had financings in play during the reporting period. Burcon has a rights offering for a maximum of 43,941,536 shares at 35 cents which is set to expire June 25th. Meanwhile, MediPharm closed a bought deal financing of 13.5 million shares at $5.55 on June 17th.

Last report we pointed to a large jump in short positioning at VersaPay (Mostly Sunny ; VPY). However, this week short positions in the stock have been almost entirely covered. Northview Apartment REIT (Mostly Sunny; NVU) was one of the top names to see a reduction in short interest, falling to 2.22% of float from 4.04% in the last report. The REIT completed a bought deal financing around June 4th. According to INK signals, it still has the potential for a short squeeze.

INK signals in this report are based on comparing short-selling interest and insider commitment levels at the firm. The signals are available for stocks with INK Edge rankings in the short report tab on the INK company pages.

This post first appeared on INKResearch.com.

Disclosure: I hold a position in Burcon Nutrascience.

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).