The Most Heavily Shorted Stocks on the TSX

Short sellers are having their day. But they’re focused on the wrong stock!

| More on:
The Motley Fool

Even though it’s doom and gloom across the board for most investors today, some of us have to be making money in this Fed/China inspired meltdown.  Right?  It’s not me, that’s for sure.

There are those that walk amongst us that are brave enough to sell stocks short, allowing them to profit when the market does what it’s doing today.

Unfortunately for them however, when we turn to the TSX’s published list of top short positions, we find sitting perched atop the pile one of the only stocks to be flashing green today.  Manulife Financial (TSX:MFC) is numero uno with an outstanding short interest of 82 million shares, a near 19 million increase from the end of May.  Oops!

As we had indicated in a recent edition of Take Stock, Manulife and its life co peers are poised to benefit in a rising rate environment, which is part of the reason for today’s decline.  Somebody needs to re-read the playbook!

The rest of the list checks out pretty nicely however.  Mining companies Lundin (TSX:LUN), New Gold (TSX:NGD), and Osisko (TSX:OSK) fall in line after Manulife.  Each has an outstanding short interest as a % of shares outstanding of 12.2%, 10.9%, and 9.6% respectively.  And all are taking a beating today.  Only Lundin however has seen its outstanding short interest increase from the end of May.

Not too far below these mining companies on the list however rests another interesting entry.  The iShares S&P/TSX 60 Index Fund (TSX:XIU) currently has an outstanding short interest of 39 million shares, up 7.5 million from the end of May.  A wise move given our market’s exposure to resources.

If you’d like to get tuned in as to why anybody would want to short the TSX 60, click here to download our special FREE report “5 Stocks to Replace Your Canadian Index Fund”.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler does not own any of the companies mentioned in this report.  The Motley Fool has no position in any stocks mentioned at this time

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

Build Your Retirement Fortune With These Top TFSA Stocks

Here are two top Canadian dividend stocks you can add to your TFSA to build wealth for retirement.

Read more »

Path to retirement
Dividend Stocks

Invest in These Stocks for a Worry-free Retirement Income Stream

Are you looking for an income stream that can pay you throughout your retirement? Then invest a portion of your…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Could This Undervalued AI Company Be Canada’s Next Big Thing?

Open Text (TSX:OTEX) stock could be the next tech stock to surge from its use of artificial intelligence, making it…

Read more »

TELECOM TOWERS
Dividend Stocks

Is BCE Stock Still a Top Telecom Investment in Canada?

Canada’s telecoms can provide growth and income in a defensive shell. Let’s see if BCE is still a top telecom…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 Canadian Dividend Stocks I’ll Be Buying Hand Over Fist in June 2023

These two beaten-down Canadian dividend stocks could help you earn handsome returns on your investment in the long term if…

Read more »

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk
Dividend Stocks

If You’d Invested $10,000 in Loblaw Stock in 2012, Here’s How Much You’d Have Today

Loblaw stock had a crazy decade, with many huge moves. This could have created wealth from a $10,000 investment, but…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Investing

Retire Fearlessly: TFSA Stocks to Build Your Wealth Ahead of Time

Do you want to retire fearlessly? Invest your long-term capital in these extraordinary growth stocks in your TFSA.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Where to Invest in Oil Stocks in June 2023

Suncor Energy is a Canadian oil stock that's set up to benefit from strong oil prices, as it trades at…

Read more »