After a weak couple of months, cannabis stocks rallied in the first week of September. That rally seems to have stalled so far in the second week of the month.
S3 Partners analyst Ihor Dusaniwsy said Tuesday that short sellers made more than $100 million in profits on their cannabis positions on Monday alone.
Despite major $1.7 billion year-to-date losses for short sellers, the cannabis group remains one of the largest targets of short sellers.
Dusaniwsky said the total outstanding cannabis short position among 150 cannabis stocks is more than $5 billion. He said most of the short selling is concentrated in a handful of cannabis stocks, and the top 20 most shorted stocks have an average short percent of float of 15.8%.
“While recent mark-to-market profits have lessened the overall threat of a short squeeze in the Cannabis Sector there are specific securities that are still valid short squeeze candidates,” Dusaniwsky said.
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Top Cannabis Shorts
Here’s a look at the 14 cannabis stocks short sellers are targeting hardest, sorted by total short interest.