The Short Report

Weekly Reports | Aug 08 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 August 1, 2019

Last week saw a blow-off rally for the ASX200, kissing the all-time intraday high and falling back again ahead of this week’s precipitous slide.

The run to the high itself might explain why there’s a lot more red than green on the table below, although there were a couple of individual stories.

One stock that had been left behind in the run is poultry company Inghams Group ((ING)), which last week became the most shorted stock on the market with an increase to 19.3% from 16.8% the week before. No new news, just a relentless drought, which is also why we see Nufarm ((NUF)) in second position on 17.8%.

Satellite company Speedcast International ((SDA)) has chopped around since its big fall on another profit warning in early July, with brokers suggesting the company may need to raise capital or may become an opportunistic takeover target. Assuming ASIC data are accurate, Speedcast shorts fell to 8.8% from 10.3% last week on the run-up to the high.

There has similarly been no new news from any of child care centre operator G8 Education ((GEM)), debt collector Collection House ((CLH)) or kitchen/bathroom specialist GWA Group ((GWA)), yet last week saw shorts in those companies jump from under 5% to 6.9%, 7.7% and 7.9% respectively, possibly implying shorters are setting for earnings result disappointment.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+
ING     19.3
NUF    17.8
BAL    16.4
GXY   15.8
ORE    15.5
JBH     14.3
NXT    13.9
SYR    13.2
BWX   12.0
PLS     11.9
DMP   11.8
HUB   11.1


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