The Short Report

Weekly Reports | Oct 11 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 UIKeyInputLeftArrowamounts 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:

Note: Last week's report erroneously cited plutonium as a by-product of rare earth mineral processing at Lynas Corp's plant in Malaysia. The by-products are uranium and thorium. FNArena apologises for the error.

Week ending October 4, 2018

Last week saw the ASX200 dip and recover before the whitewash we are now experiencing.

Movements in short positions were relatively modest last week with no move within the 5%-plus shorted table exceeding one percentage point. There are nevertheless a few stories we can highlight.

Shorts in funeral director InvoCare ((IVC)) ticked up only slightly but it was enough to take the stock into the 10%-plus club, just. Our cut-off for the week is October 4 and it was on October 5 the company issued a profit warning, bemoaning a benign flu season compared to last year and subsequent lack of departures.

I highlighted data centre operator NextDC ((NXT)) last week, which had shifted to 8.6% shorted from 7.2% following an earnings result which disappointed the market on new customer take-up, sending the stock southward. Last week NextDC shorts rose again, to 9.2%.

But subsequently, the company has moved to buy out the landlord of its original suite of metro centres, Asia Pacific Data Centres ((AJD)), and the share price has rallied right back up again.

Satellite operator Speedcast International ((SDA)) has not recovered any ground since falling to earth on a disappointing earnings result in late August. It has since been creeping up the table, last week moving to 7.3% from 6.5%.

And finally, we note accounting software firm MYOB ((MYO)) has been hanging around on the table for some time, last week at 7.0%, but this week received a takeover offer which saw the stock jump 19% on the day. Short-covering was no doubt in play.

We’ll keep an eye out in next week’s Report for pet-vet chain Greencross ((GXL)), which also became an M&A play this week after acknowledging more than one approach. Its share price jumped 18%, and last week it was 10.4% shorted.

No Movers & Shakers this week.? 

Weekly short positions as a percentage of market cap:

10%+

JBH     19.7
ORE    16.8
SYR    16.3
GXY   16.1
ING     12.9
DMP   12.3
MTS    12.1
MYR   10.9
BWX   10.7
GXL    10.4
IVC     10.0


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