Who is still shorting High Tide? I have been following the cannabis space since Trudea's election in 2015, and I've made some very good pivots. I went into Canopy early but left as the valuation skyrocketed; went to OGI during its heyday; and then turned to Aphria until they started spending their money on an alcohol acquisition and merged with the inferior Tilray. Until recently, I have been a big fan of Curaleaf. I'm still a fan. Their debt load kind of scares me, but they seem to be the best play until I looked into High Tide.
There are a few things that really stand out that made me switch over. First, the company has a low debt level - about 50 million. Their revenue keeps rising and has increased 100% YoY. I kind of stopped following the Canadian market because it is in a cannibalistic phase, so I was extremely surprised to see this company grow so much without being fuelled by pure debt. I figured their accounting would be sketchy as it is with some cannabis companies, but they use Ernest and Young, which is a tier 1 accounting firm. Next, consider the market cap. 180 million and around 230 million with the exercise of warrants. Compared to any peer in the cannabis space and that is the cheapest valuation you can get.
BUT WHAT REALLY SURPRISES ME IS THE SHORT VOLUME.
https://shortdata.ca/
Type in HiTi and check High Tide on the NASDAQ. I don't know who is doing this, but 50-70% of the trading volume is short volume. Who the hell is shorting this stock??? With an average daily volume between 200k and 400k that is a very brave trade given the company fundamentals and the lead into a legislative-induced bull cycle. It reminds me of the OGI squeeze a couple of years ago when the democrats won. I smell opportunity. What do people think?