Fighting the Shorts It’s open season on short sellers these days.
Once they were the hunters spreading fear of the Big Short among corporate executives, but now they are the hunted quarry fleeing the Big Squeeze that rank-and-file investors are laying down in Reddit forums and other social media.
Just a few Canadian companies, notably BlackBerry Ltd. and members of the cannabis sector, have had their stock prices bid sky high by the Reddit crowd to pressure short sellers into buying back shares and close out positions. The short sellers are compelled to cut their losses, but, in doing so, they further bid up share prices, adding to the gains of the Big Squeeze operators.
Are there more short squeezes on the way? What Canadian companies could be targeted?
Leading candidates have high percentages of float sold short. A secondary factor that increases the odds of a squeeze is if the company’s shares also trade in the United States (where small investors are currently most likely to act as a group).
Companies with more than 12% of float sold short