SNDL Significant Short Interest When Compared to FIRE and HITI - Keep an Eye on It

$FIRE $HITI $SNDL (OTC: $HITIF) (OTC: $SPRWF) A quick look at how short interest has changed over time and where the market is sitting right now for a few popular cannabis companies. Obviously there has been a lot of content/discussion around short-squeeze and the impact we saw on GME so I thought it would be good to break it down a bit to understand Short Interest in a more “stable” situation. I think this view helps put things in perspective when looking at a few similar companies. This post is not meant to bash these companies but to provide which I find interesting.  Summary: •    For a stock that you buy it is good to understand what the short interest is – brief breakdown and explanation •    Short interest increased significantly for these 3 stocks in mid/late February – and is likely an indication of the significant runup of prices over that period of time •    The short increase looks significant but $FIRE and $HITI seem to be in a much better position than $SNDL  Shares Outstanding vs Shared Float Shares outstanding refers to the total number of shares a company has issued, while the public float — also referred to as floating shares or "the float" — are shares that are publicly owned, unrestricted and available on the open market. A few key points to keep in mind. •    If the public float is well below the shares outstanding, it means a high proportion of the company is employee-owned •    If the public float is well below the shares outstanding, the stock price has the potential to be volatile as there are fewer shares trading at any given time; a larger public float can mean less volatility •    If the number of floating shares is very close to the shares outstanding, it means there is little employee ownership in the company Detailed read here Short Interest Rules of Thumb •    Short interest as a percentage of float below 10% indicates strong positive sentiment •    Short interest as a percentage of float above 10% is fairly high, indicating the significant pessimistic sentiment •    Short interest as a percentage of float above 20% is extremely high Detailed read here Short Interest Comparison HITIF FIRE SNDL Current Short Volume         7,814,800          18,008,300 180,140,000 Shares Outstanding    610,000,000        734,000,000    1,660,000,000 Short % of Outstanding 1% 2% 11% Shares Float    202,000,000        649,000,000        436,000,000 Short % of Float 4% 3% 41% Share Float % 33% 88% 26%   Supreme Short interest has remained stable over 2020 while declining slightly. As of Feb 26th, 2021 there was a significant increase in short interest, more than doubling from the end of Q4. I discussed in a previous post how recent financing could be good for Supreme if they can use the cash properly.    High Tide There was almost no short interest in High Tide for 2020 and only recently did they see a significant jump in short interest. On a more positive note the short interest on high tide is decreasing so hopefully this trend continues. Sundial Growers There has been a significant increase in short interest over the last few months. The short ratio to shares float is also significant. On a more positive note, it seems that a large number of shares are held by insiders, which is typically a good sign, especially if they haven’t been selling.   TLDR Looked at the current short interest across 3 cannabis companies, $FIRE, $HITI, and $SNDL. Provided a brief view of shares float vs shares outstanding and how it might impact the short interest. Short interest has increased for all 3 of these companies but SNDL seems to be substantially more shorted than the other 2. Just a view to help provide perspective. Disclaimer: this is not investment advice, do your own research! Disclosure: I do not own a position in any of these companies - they are on my watchlist currently

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SNDL Significant Short Interest When Compared to FIRE and HITI - Keep an Eye on It

bearish

$FIRE $HITI $SNDL

(OTC: $HITIF) (OTC: $SPRWF)

A quick look at how short interest has changed over time and where the market is sitting right now for a few popular cannabis companies. Obviously there has been a lot of content/discussion around short-squeeze and the impact we saw on GME so I thought it would be good to break it down a bit to understand Short Interest in a more “stable” situation. I think this view helps put things in perspective when looking at a few similar companies. This post is not meant to bash these companies but to provide which I find interesting. 

Summary:
•    For a stock that you buy it is good to understand what the short interest is – brief breakdown and explanation
•    Short interest increased significantly for these 3 stocks in mid/late February – and is likely an indication of the significant runup of prices over that period of time
•    The short increase looks significant but $FIRE and $HITI seem to be in a much better position than $SNDL 


Shares Outstanding vs Shared Float
Shares outstanding refers to the total number of shares a company has issued, while the public float — also referred to as floating shares or "the float" — are shares that are publicly owned, unrestricted and available on the open market. A few key points to keep in mind.
•    If the public float is well below the shares outstanding, it means a high proportion of the company is employee-owned
•    If the public float is well below the shares outstanding, the stock price has the potential to be volatile as there are fewer shares trading at any given time; a larger public float can mean less volatility
•    If the number of floating shares is very close to the shares outstanding, it means there is little employee ownership in the company
Detailed read here

Short Interest Rules of Thumb
•    Short interest as a percentage of float below 10% indicates strong positive sentiment
•    Short interest as a percentage of float above 10% is fairly high, indicating the significant pessimistic sentiment
•    Short interest as a percentage of float above 20% is extremely high
Detailed read here

 

Short Interest Comparison

 

 

HITIF

FIRE

SNDL

Current Short Volume

        7,814,800

         18,008,300

180,140,000

Shares Outstanding

   610,000,000

       734,000,000

   1,660,000,000

Short % of Outstanding

1%

2%

11%

Shares Float

   202,000,000

       649,000,000

       436,000,000

Short % of Float

4%

3%

41%

Share Float %

33%

88%

26%


 

 

 


Supreme

Short interest has remained stable over 2020 while declining slightly. As of Feb 26th, 2021 there was a significant increase in short interest, more than doubling from the end of Q4. I discussed in a previous post how recent financing could be good for Supreme if they can use the cash properly. 

 
High Tide

There was almost no short interest in High Tide for 2020 and only recently did they see a significant jump in short interest. On a more positive note the short interest on high tide is decreasing so hopefully this trend continues.

Sundial Growers

There has been a significant increase in short interest over the last few months. The short ratio to shares float is also significant. On a more positive note, it seems that a large number of shares are held by insiders, which is typically a good sign, especially if they haven’t been selling.

 
TLDR

Looked at the current short interest across 3 cannabis companies, $FIRE, $HITI, and $SNDL. Provided a brief view of shares float vs shares outstanding and how it might impact the short interest. Short interest has increased for all 3 of these companies but SNDL seems to be substantially more shorted than the other 2. Just a view to help provide perspective.

Disclaimer: this is not investment advice, do your own research!

Disclosure: I do not own a position in any of these companies - they are on my watchlist currently

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