Top 5 TSX Gold Short Positions

Top 5 TSX Gold Short Positions

Last week, Chris Damas of the BCMI Report published a list of the top 20 TSX short positions for January 31. Damas has been putting the list out every two weeks or so since the end of December, and his intention is "to discern potential candidates for purchase or sale."

As he explains in the first iteration of the list, knowing which companies have a "large short position relative to the public float and daily trading volume" is useful because a a big short position "is often a sign unexpectedly good news or a general market upswing could boost the stock more than expected." On the flip side, it can also indicate that "investors know there are undisclosed problems at a company, or that disclosed problems could get worse."

Damas' most recent list includes five gold companies; here, Gold Investing News takes a look at those companies, commenting on what they've been up to lately and if they've seen significant share price movement since the list was released.

Osisko Mining — short: 43,056,301

Osisko Mining (TSX:OSK) has been a fixture in the news since Goldcorp (TSX:G,NYSE:GG) made a $2.6-billion hostile takeover bid for the company midway through January. Since then, Osisko has made — and had approved by the Quebec Superior Court — an application to sue Goldcorp on the basis that Goldcorp "misused confidential information" provided when the companies were on friendlier terms.

Unfortunately for Osisko, proving that claim will be difficult; as the Financial Post points out, the disagreement between the companies stems from a meeting about which "no documentation ... exists." Nevertheless, a trial has been set for March 3 to 5.