After pocketing nearly $1 billion in profits in 2019, cannabis short sellers are making a killing once again in 2020. In the past 30 days, cannabis short sellers have earned a mark-to-market net profit of $191.6 million, according to S3 Partners analyst Ihor Dusaniwsky.
Dusaniwsky said Wednesday that cannabis short sellers have earned $402.5 million in profits so far in 2020.
Dusaniwsky said S3’s portfolio of more than 200 U.S. and Canada-listed cannabis stocks currently has $2.45 billion in total short interest. In the past month, short sellers have added $36.2 million to their bearish cannabis bets.
“With total shares shorted and short interest as a percentage of float both down significantly in 2020 we see that stock borrow fees in the sector have declined appreciably,” Dusaniwsky said. Falling borrow fees and year-to-date profits for most cannabis short sellers suggest any short squeezes in the space are unlikely in the near-term, he said.
While cannabis short sellers have had another great year so far in 2020, not every stock has paid off. For example, GW Pharmaceuticals short sellers have taken a $24.5 million net loss so far this year.
Cannabis Finance Experts Chat Banking Challenges, Payments & Regulatory Compliance ” data-reactid=”38″>Cannabis Finance Experts Chat Banking Challenges, Payments & Regulatory Compliance
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