Pat: Please could you comment on whether one should consider existing short positions when making an investment decision. For example, there are significant short positions in CGI and Bank of Nova Scotia, both of which are top buy recommendations of yours. Thank you.

High short positions are no longer a particularly telling stock market indicator, since traders and hedge funds often combine a short sale with some other transaction in stock options. Rather than having to buy the stock back in the market, for instance, holders of a.. Read More

Hi Pat: I’ve seen your comments on insider buying and selling. Do you ever look at the current short position or recent changes in the short position when looking at making buying or selling decisions? I noticed that Bombardier had the largest net increase in its short position recently. Thanks.

A high short position is no longer a particularly telling stock market indicator, since traders and hedge funds often combine a short sale with some other transaction in stock options.

For instance, rather than having to buy the stock back in the market, short sellers may… Read More

Dear Pat: I was just looking at the Toronto Stock Exchange web site, and clicked on the 20 top short positions link. I own three of the shares that are listed there. Should I sell them?

A high short position is no longer a particularly telling stock-market indicator. That’s because traders and hedge funds often combine a short sale with some other transaction in stock options or stock futures. Rather than having to buy the stock back in the market, for… Read More