The Short Report

Weekly Reports | Jul 11 2019

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 July 4, 2019

Last week saw the ASX200 enjoy another rate cut and push towards a new post-GFC high.

Perhaps the most interesting thing to note about the table below is that there wasn’t a lot of short position movement last week but the number of stocks holding short positions of 5% or more is quietly shrinking. Presumably that is reflective of the determined push to a new all-time high for the index.

Not shrinking, however, is the 10% plus shorted club. Of the 45 stocks in total shorted by 5% or more, 29% are shorted by 10% or more. This would reflect stock-specific rather than market-specific views.

Two stocks saw short position movements of one percentage point or more last week. One was Bellamy’s ((BAL)), up to 15.2% from 14.2%, but such moves this high up in the table are common and not worth dissecting unless something obvious has occurred.

The other was SpeedCast International ((SDA)), which I flagged last week was a good chance to see some short-covering after the stock fell -56% following a profit warning. SpeedCast shorts have fallen to 7.9% from 9.9%.

Otherwise, my only other “keep an eye on” stock, which I have highlighted before as making a steady climb up the table, is investment platform Hub24 ((HUB)). As debate rages among analysts as to whether RBA rate cuts will force Hub and peers to cut margins (Hub says no), shorts have ticked up further to 9.4% from 8.6%.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+
SYR    18.7
NUF    17.5
ING     16.2
BAL    15.2
ORE    14.9
NXT    14.6
GXY   14.1
JBH     13.4
BWX   12.6
DMP   11.1
BIN     10.8
PLS     10.7
MTS    10.2


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