After netting nearly $1 billion in profits in 2019, cannabis short sellers got off to a strong start in 2020 as well. However, cannabis stocks have taken off in recent weeks, and cannabis short sellers are feeling the pain.
S3 Partners analyst Ihor Dusaniwsky said Thursday that cannabis short sellers are down $641 million in the month of May, and their year-to-date profits are down to just $180.1 million.
Dusaniwsky said S3’s portfolio of 240 U.S. and Canada-listed cannabis stocks currently has $2.8 billion in total short interest. In the past week, Dusaniwsky said short sellers have added $76 million to their positions.
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 …