The S&P/TSX Composite Index was up 171 points in mid-afternoon trading on July 28. Canadian stocks
have bounced back nicely in the second half of July, recouping many of the sharp losses that opened the
month. Today, I want to look at two of some of the most heavily shorted TSX stocks. Is it worth taking
the contrarian position?
Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a Montreal-based company that provides payment technology
solutions to merchants and partners in North America and around the world. Its shares have plunged
47% in 2022 at the time of this writing. The stock is down 57% year over year.
This tech stock has found itself with significant short interest in recent months. Investors may want to
stake the opposite position as we look ahead to the month of August. Shares of Nuvei are trading in
favourable value territory compared to its industry peers. Meanwhile, it is still on track for strong
earnings growth going forward.
Pyrogensis Canada (TSX:PYR) is another Montreal-based company that designs, develops, manufactures,
and commercializes plasma processes and systems in Canada and around the world. This stock has also
attracted major attention among short sellers. Its shares have plunged 50% so far in 2022.
The company had a solid start to fiscal 2022 as it posted total revenues of $4.20 million while its backlog
grew to $41.2 million. This stock last had an RSI of 42, which puts it just outside of technically oversold
territory.
