RE:RE:RE:RE:Shorts up by 291k to 1.77 Million as of Mar. 31I was looking through the past 6 yrs of history related to shorts and, they seem to average close to 1 million.
They've been close to zero May - June 2018 and as high as 2.5 million Mar. 2020.
So, I don't see a short squeeze here, but if investors put up their shares at higher prices, it can slow down the selling pressure as shorts cannot borrow shares that are put up for sale.
Why the shorts? Could be many reasons, but I don't see anything seriously wrong with the business.
It's recession proof, but the fear factors for shorters in this industry can stem from the obvious, Covid-19 pandemic, high interest rates and inflation as it relates to high labour costs.
What I think is the most obvious reason for the large short position is the ongoing class action lawsuits which have been aimed at all the homes and the government as well.
The claim is that the homes and the governments did not use proper safety protocol and thus were negligent.
But, what exactly were safe protocols? The government health department and the World Health Organization kept changing protocols and testing requirements.
The Ontario Government was not prepared. There were shortages of masks, testing equipment, you name it. I'm not sure why our government along with all governments in the world were not prepared for Covid-19, but they weren't.
These lawsuits although real, I believe are money grabs by law firms who stand to profit the most if they win, with little funds going to families.
Although in Dec. 2022, an Ontario judge certified the class action against the Ontario Governmet, which they are appealing, Justice Belobaba noted; "
The Justice also found that by alleging “gross negligence” the plaintiffs could circumvent the Supporting Ontario’s Recovery Act, which prevents COVID-19-related lawsuits. At the same time, Belobaba noted the class action would be “challenging at best.”