RE:RE:Short interest in CPG versus other O&G companies@barneyj44: I absolutely did notice the pop in ARX share price. Some of it was likely due to a short squeeze. I'll briefly explain why I think this might be the case by pointing to Friday's volumes of CPG (and a couple of others) versus ARX.
CPG:
Average daily volumes: 3.902 million
Friday's volumes: 2.436 million
% difference: -38%
MEG:
Average daily volumes: 2.275 million
Friday's volumes: 1.739 million
% difference: - 24%
WCP
Average daily volumes: 3.463 million
Friday's volumes: 3.441 million
% difference: -1%
ARX:
Average daily volumes: 3.318 million
Friday's volumes: 4.268 million
% difference: +29%
As the numbers reveal, there was huge bifurcation between ARX and other O&G stocks on the TSX. While most companies saw low volumes traded, ARX traded in significantly higher volumes.
Given the heatwave large parts of North America has been encountering, natural gas prices have rised substantially. This has likely resulted in some of the investors who had been holding short positions in ARX to cover. This may be further catalyzed by the fact that ARX will be going ex-dividend (0.06 cents) this coming week.
This also bodes well for CPG as we have a disproproinately high levels of shares shorted (about double the average TSX listed O&G company that I examine), This means at one point or another shorts will be squeezed if WTI prices remain at these levels. CPG, too, will have its 5%+ move higher days.
barneyj44 wrote:
zHighalpha1 did you notice the move Arx made on Friday , a gain of .50 cents was wondering if it could of been a lot of short covering? If thats the case it wouldn't surprise to see Cpg have some great days coming to it.