Hot Stocks Among Short Sellers: Tilray Becoming 'The Tesla Of The Pharma Sector'

FIS Astec Analytics released its latest weekly list of the hottest stocks among short sellers, and two popular cannabis stocks are still on the list.

Cannabis Skeptics

Cannabis stocks have been on fire in recent months thanks to Canadian legalization in October and statewide legalization measures in Michigan and Missouri that passed last week in the U.S.

According to FIS Astec, short sellers continue to pile into cannabis play Tilray Inc TLRY. The volatile cannabis stock is down 24 percent in the past month, but short sellers are betting on more downside ahead. In the past week, FIS Astec reports short sellers increased their bearish bets, upping volume by 3 percent and the stock’s utilization rate by 0.5 percent.

"Tilray, the Canada-based provider of cannabis products to the pharmaceutical industry, is fast becoming the Tesla of the pharmaceutical sector, exhibiting significant volatility, recording highs and lows in quick succession," FIS Astec wrote. Tilray reports earnings Tuesday afternoon.

Cannabis play and beverage company New Age Beverages Corp NBEV also made this week’s list. FIS Astec said New Age’s short interest volume was up 18 percent last week, while its utilization dropped to 63 percent.

As of Nov. 9, financial analytics firm S3 Analytics reported a total outstanding short position of more than $3.35 billion in cannabis stocks alone.

Other Short Stocks

FIS Astec’s top short idea of the week is Sirius XM Holdings Inc SIRI. Utilization was up 16 percent to 93 percent on the week.

Enphase Energy Inc ENPH is another top short idea this week. FIS Astec said short volume in the solar power solutions company is up 242 percent since late June and the current utilization rate is maxed out at 100 percent.

After a three-week absence, Chinese auto company Nio Inc - ADR NIO returned to the hottest shorts list this week after utilization increased from 52 percent to 64 percent last week.

Finally, short sellers are betting the recent precipitous drop in oil prices is bad news for Hi-Crush Partners LP HCLP. Last week, short volume dropped 5 percent and utilization dropped to 79 percent. Some short sellers may simply be taking profits on the stock, which is already down 54.1 percent in the past three months.

Related Links:

Even Marijuana Bulls Are Becoming Skeptical Of US-Listed Cannabis Stock Prices

What Jeff Sessions' Resignation Could Mean For Cannabis Stocks