Lack of Transparency. ACB can do better.First, the usual disclaimer - I am long ACB.
Shorters thrive on stocks that are very liquid and for which there is perceived investor hype that is at odds with existing underlying fundamentals. It should not surprise anyone that ACB with almost a billion shares outstanding allows shorts a quick exit from a short position at very little sqeeze risk.
Compounding short activity is the lack of transparency to view real time trading that takes place on the many dealers exchanges that exist in Canada. The sell side having access to ALL the information allows it to manipulate the TSX volume and outwit the average investor. For example, on July 25th upon completion of the ACB LEAF share transfer, TSX trade volume in ACB was just over 10 million shares. From an average trade volume perspective - not out of the ordinary. In reality total volume on that day was over 48 million shares. The TSX accounting for only 23 percent of the overall volume. This significant event should be know to the investor and not just the sell side.
My point in stating the above is that ACB needs to look at two things.
1. A reverse stock split. Such a move would have the benefit of reducing short activity as well as reducing the dilution effect.
2. Look to list on a US exchange. US listed stocks are subject to greater transparency. Unlike the self-regulated exchanges in Canada, the SEC has real teeth when it comes to oversight.
As usual, I welcome critcal thought.
For those interested in understanding some of the Canadian issues, I offer this link -
https://www.equedia.com/canada-stock-market-manipulation-transparency-issues/