Enbridge Inc. Short Selling
Leading the way in short trading value over the last month has been Enbridge Inc., the Calgary based energy company which has managed to accumulate equal levels profit and controversy over the last seventy some odd years. The share price of Enbridge Inc. climbed considerably during the last days of June, jumping nearly $5.00 in just two short days, and the resulting climb triggered a resurgence of short sellers. The short value of Enbridge has been as high as $858 million this month, but even though that number has dropped, it still manages to be the largest short position in the market at a value of more than $554 million. The surge in price during the summer months and the subsequent increase in short sales is largely attributed to the contract that Enbridge Inc. was able to secure with the state of Minnesota Public Utilities Commission. In late June of this year, the Minnesota PUC approved a line upgrade and the project will benefit Enbridge Inc. to the tune of more than $5 billion. Since the beginning of July the share price of Enbridge Inc. has stabilized a bit, coming down below the $46 mark, but short sellers have yet to realize the full potential benefit of their position.
Canadian Banks Short Selling
The Royal Bank of Canada and the Toronto Dominion Bank are also among the companies with the highest short trading values through mid-July. The Royal Bank of Canada has lately been embroiled in some small controversy regarding mortgage fraud and both banks recently announced increases to their prime lending rates. In the first half of the month, RBC raised their prime rate from 3.45% to 3.70%. The Toronto Dominion Bank made an identical rate hike, similarly increasing their prime rate by 25 basis points. The two banks have taken over the highest trading short positions from competitors such as the Bank of Nova Scotia. If you remember our last update, it was the Bank of Nova Scotia that had the highest short trading value just prior to the summer. Short sellers have scaled back significantly on that particular security, reducing the short trading value of that stock by approximately $800 million in just a single month.
Suncor Short Selling
Rounding out the top four is Suncor Energy. Suncor reached a peak short trading value of $757 million after they were unable to supply their customers with enough product to conduct business as usual in June. Petro-Canada stations in Alberta, Saskatchewan, Manitoba and B.C were all left without gas at their pumps for several days due to the Suncor production shortage. Things are getting back to business as usual for Suncor and the short trading value has decreased to approximately $510 million, but the share price has been experiencing some sharp drops. Since July 13th alone, for example, the price of Suncor has dropped nearly $2.00 in value.