Canopy Growth Corp (WEED)

[john1311]

To make matters worse for cannabis short sellers, borrow fees have been on the rise. Dusaniwsky said average borrow fees for the top 20 most shorted cannabis stocks are up 12.8% over the past month to 32.1%. Cannabis short sellers are now paying more than $2.55 million in daily financing cost.

Here are the five most heavily shorted cannabis stocks today by short interest, according to S3:

Canopy Growth Corp (NYSE: CGC), $913.7 million.
GW Pharmaceuticals PLC (NASDAQ: GWPH), $656.1 million.
Aurora Cannabis Inc (NYSE: ACB), $186.8 million.
Cronos Group Inc (NASDAQ: CRON), $307.3 million.
Aphria Inc (NYSE: APHA), $143.5 million.
Dusaniwsky said traders looking for the most likely short squeeze candidates should focus on stocks with the highest borrow fees that have generated the biggest losses for short sellers year to date.

“Mark-to-market losses coupled with rising stock borrow rates are priming the pump for potential short squeezes in several cannabis stocks,” Dusaniwsky wrote.