The Short Report

Weekly Reports | May 17 2018

Guide:

The Short Report draws upon data provided by the Australian Securities & Investment Commission (ASIC) to highlight significant weekly moves in short positions registered on stocks listed on the Australian Securities Exchange (ASX). Short positions in exchange-traded funds (ETF) and non-ordinary shares are not included. Short positions below 5% are not included in the table below but may be noted in the accompanying text if deemed significant.

Please take note of the Important Information provided at the end of this report. Percentage amounts in this report refer to percentage of ordinary shares on issue.

Stock codes highlighted in green have seen their short positions reduce in the week by an amount sufficient to move them into a lower percentage bracket. Stocks highlighted in red have seen their short positions increase in the week by an amount sufficient to move them into a higher percentage bracket. Moves in excess of one percentage point or more are discussed in the Movers & Shakers report below.

Summary:

Week ending May 10, 2018

Last week saw the ASX200 reach, but fail to close above, the post-GFC high of 6135, despite a couple of forays intraday. The index is currently consolidating at this lofty level rather than turning tail, and it is now becoming evident the shorters are starting to hurt.

To that end, we note that only yesterday, Domino’s Pizza ((DMP)) and JB Hi-Fi ((JBH)) posted the second and third gains among ASX200 stocks while Myer ((MYR)) jumped 16%. Those stocks were, as at last week, respectively the second, third and fifth most shorted stocks on the market. We’ll keep an eye out in next week’s numbers.

Last week, as the table below indicates, there were a lot more short position reductions than increases.

Last week shorters continued to bail from Nanosonics ((NAN)) in the wake of FDA approval for the company’s disinfectant product. Having fallen to 13.1% from 14.1% the week before, last week Nanosonics shorts fell to 11.6%.

Healthscope ((HSO)) has now received a counter takeover offer. Last week Healthscope dropped off the 5% plus shorted table from 6.2%.

Shorts in Afterpay Touch ((APT)) plunged to 7.3% from 9.7%.

Shorts in Metals X ((MLX)) fell to 6.8% from 8.3%.

On the flipside, a profit warnings and subsequent -22% share price plunge for Greencross ((GXL)) only served to invigorate the shorters. Rather than falling on profit-taking, Greencross shorts jumped to 8.5% from 6.7%.

Shorts in G8 Education ((GEM)) rose to 8.5% from 7.4%.

See below.

Weekly short positions as a percentage of market cap:

10%+

SYR    20.9
DMP   16.3
JBH     16.2
GXY   14.5
MYR   11.9
VOC   11.7
NAN   11.6
ORE    11.4
AAC   11.1
NWS   11.1
BWX   10.8
IVC     10.6
RFG    10.6
HT1     10.3
IGO     10.2
APO    10.1


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