The TSX stocks on our list have a large number of short positions, especially relative to their size
SmallCapPower | February 9, 2018: TSX Markets publishes a list of the most shorted TSX stocks every two weeks. These five companies are the smallest on the list. They have been shorted extensively, which means they could be subject to a short squeeze. The TSX is down 6% over the past month.
Newstrike Resources Ltd. (TSXV:HIP) – $1.19
Cannabis
Newstrike Resources is a Canada-based licensed producer of marijuana. The Company produces 2,500kg of cannabis yearly, and plans to expand production to reach 24,500kg/year. The Company was recently paid $9.5M via break fee after its prospective acquisition by CanniMed Therapeutics (TSX:CMED) failed.
- Market Cap: $477.5 Million
- Short Positions as of January 31: 51,576,069
- Short Positions as of January 15: 3,563,600
- Net Change: 48,012,469
Pengrowth Energy Corp. (TSX:PGF) – $0.87
Oil & Gas Exploration and Production
Pengrowth Energy is a Canada-based oil & gas producer. With operations across Western Canada, Pengrowth produces light oil, heavy oil and natural gas. The Company has restructured to pay down debt and has been selling assets reducing its gross well and facility count by 81%. The Company plans to focus on long-term development at its Lindbergh thermal oil and Montney gas properties, ramping up production at its Lindbergh facility, from the existing 15,000 bbl/d to 42,500 bbl/d by 2020.
- Market Cap: $480.5 Million
- Short Positions as of January 31: 16,521,849
- Short Positions as of January 15: 17,156,800
- Net Change: -634,951
Sandstorm Gold Ltd. (TSX:SSL) – $5.99
Sandstorm Gold holds royalties on 19 producing mines, as well as many other in-development and exploration projects. In July 2017, the Company acquired Mariana Resources for $175M.
- Market Cap: $1,099.2 Million
- Short Positions as of January 31: 16,424,194
- Short Positions as of January 15: 15,049,971
- Net Change: 1,374,223
Eldorado Gold Corp. (TSX:ELD) – $1.50
Gold
Eldorado Gold is a Canada-based gold producer with operations in Turkey, China, Greece, Romania and Brazil. The Company has three operating mines and several projects under development, and acquired Integra Gold, located in Quebec, in May 2017 for $590M. The Company is guided to produce 160,000-190,000 oz. in 2018.
- Market Cap: $1,191.0 Million
- Short Positions as of January 31: 17,519,000
- Short Positions as of January 15: 26,826,400
- Net Change: -9,307,400
Kelt Exploration Ltd. (TSX:KEL) – $7.20
Oil & Gas Exploration and Production
Kelt Exploration is a Canada-based oil and gas producer operating in Alberta and British Columbia. The Company’s main land holdings are in two core areas: Grand Prairie, Alberta, and Fort St. John, British Columbia. Kelt expects to produce 29,000 boe/d during 2018.
- Market Cap: $1,295.6 Million
- Short Positions as of January 31: 20,387,431
- Short Positions as of January 15: 21,177,327
- Net Change: -789,896
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.