There have been 22 short-selling campaigns against Canadian companies in the last year. Spruce Point Capital Management—whose claims that Dollarama was overvalued caused a temporary drop in the stock in October 2018—is planning to increase its activity in the country. (Financial Post)
Talking point: Ben Axler, Spruce Point’s founder, said the smaller number of analysts and stocks makes Canada a good market for activism. In the most high-profile recent case, Shopify was the target of critical reports from short-seller Citron Research in March 2018 and October 2017, but the stock has more than recovered from the small drops it suffered at those times.