Indigo Books & Music (IDG)

According to the latest IIROC short report for the period ending February 28th, shorts appear to be pressing against insiders at Indigo Books & Music (IDG). The bookseller had a negligible short position in mid-February, but that soared to 3.1% of the stock's float by month end. Short sellers may be betting that the stock is vulnerable to seasonal factors with the busy Christmas shopping season now in the rearview mirror.

What are we looking for?

We are just over halfway to the next the INK Canadian Insider Index semi-annual rebalancing to be implemented on May 20th. A stock already in the Index before the rebalancing date stays so long as it is in the top 30% of all stocks ranked on the basis of our INK Edge V.I.P. criteria (valuations, insider commitment and price momentum). Today, we want to get a sense of the stocks that are candidates to replace any drop-outs from the 50-stock index which is used by the Horizons Canadian Insider Index ETF (HII). To see which names are in top contention for index inclusion, we screen for the top-15 ranked TSX stocks using our V.I.P. criteria.

What are we looking for?

With Christmas shopping season getting started, today, we are looking for the 15 highest-ranked consumer stocks.

Rankings are determined by the INK Edge V.I.P. criteria (valuations, insider commitment and price momentum). This is the same approach we apply across the broad market to determine membership for the INK Canadian Insider Index, which is used by the Horizons Canadian Insider Index ETF (HII).

What are we looking for?

The Trudeau government was elected on a platform that included more infrastructure investment, tax benefits for middle- and lower-income Canadians as well as improved employment insurance benefits. We are looking for stocks that might benefit from these commitments, notably construction, engineering and retail-oriented names. Rankings are determined by the INK Edge V.I.P. criteria (valuations, insider commitment and price momentum). This is the same approach we apply across the broad market to determine membership for the INK Canadian insider index, which is used by the Horizons Canadian Insider Index ETF (HII).