David Rosenberg Not Listening to Foreign Short Sellers
Canadian publicly-traded companies have become the targets of foreign short speculators betting against many of the biggest names listed on the Toronto Stock Exchange.
During a visit to BNN on Nov. 7, David Rosenberg, the Chief Economist and Strategist at Gluskin Sheff + Associates said, "I can't remember a time, except the mid-1990s, where sentiment for Canada has been as negative as it is today."
Rosenberg says domestic investments are an increasingly attractive play, despite "blame Canada" sentiment reaching a two-decades high.
Valeant Pharmaceuticals International Inc. (VRX.TO -2.19%) and D+H Corp. (DH.TO -0.68%), both the target of short sellers from south of the border, have lost 49 and 11 percent of their value, respectively, over the last month.
Rosenberg says negative headlines – like those that followed accusations against Valeant regarding the company’s relationship with a mail-order specialty pharmacy - are increasingly priced into Canadian assets, an effect he believes isn’t fully warranted.
Gluskin Sheff is "starting to look at Canada in a more positive light. We’ve had the lowest share of equity exposure to Canada in the past 18 months for the betterment of our clients. But right now we are taking a closer look at it. It looks like a good turnaround value play right now,” said Rosenberg.
