The Short Report

Weekly Reports | Dec 06 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. Percentages 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 November 29, 2018

Last week the ASX200 posted another, ultimately failed, comeback.

Last week I noted Monadelphous ((MND)) shorts had jumped to 11.1% from 6.9% and Blackmores' ((BKL)) had jumped to 9.6% from 6.5% but I was not prepared to trust these moves unless they were confirmed this week, given ASIC data has been untrustworthy of late.

Monadelphous shorts have fallen back to 6.7% and Blackmores to 6.8%.

So it is with trepidation I note last week saw Domino’s Pizza ((DMP)) shorts fall to 9.5% from 11.0% and G8 Education ((GEM)) shorts fell to 7.6% from 9.2%.

It was earlier in November when Domino’s share price plunged on a weak trading update. The stock has only drifted lower since, so this can be justified as short covering for profit.

By contrast, G8 has had a strong November against the market tide and the stock has risen 45% from its lows on signs of child care occupancy improvement. So this can be justified as short covering for loss.

We’ll have to see.

Otherwise we might note milk was off last week, with all of Bellamy’s ((BAL)), a2 Milk ((A2M)) and Bega Cheese ((BGA)) moving up a notch on the table. Funnily enough, all three share prices shot up on a Chinese e-commerce regulation update, but that was this week, not last.

No Movers & Shakers this week. 

Weekly short positions as a percentage of market cap:

10%+

JBH     19.3
GXY   16.3
SYR    16.2
ORE    14.0
BWX   13.7
ING     13.1
MTS    12.7
MYR   11.5
IVC     11.8
NXT    11.0
MND   11.1
DMP   11.0
IFL      10.5


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