The Short Report – 24 Oct 2019

Weekly Reports | Oct 24 2019

See Guide further below (for readers with full access).


Week ending October 17, 2019

Supposedly positive developments with regard US-China trade had the ASX200 rallying for most of last week. Short activity was relatively modest in the period, as the table below attests.

There were nevertheless a couple of notable movers.

Shorters continue to gradually exit positions in Nufarm ((NUF)). Progress over the last month, post the announced sale of the company’s LatAm business, has been from 17.4% to 12.7% to 10.7% and last week to 9.4%. It’s not exactly a rush, which might be explained by little sign of relief on the drought front.

Bellamy’s Australia ((BAL)) had been hanging around near the top of the table for some time until the Chinese put in a takeover bid and the shorts were largely wiped. Bellamy’s has reappeared in the table at 7.9%, which might suggest not everyone is confident FIRB will agree to the Chinese getting into foot into our lucrative (thanks to Chinese demand) infant formula industry.

Syrah Resources ((SYR)) has spent many a month near or at the top of the most shorted list, alongside other battery-related (lithium) miners, but last week jumped back to the top with a short increase to 17.5% from 16.3%. The story is a familiar one in the land of “exotic” minerals. See below.

The stand-out move last week was that of Kirkland Lake Gold ((KLA)), which poked its head into the 5% plus shorted table the week before at 5.1% but last week suddenly shot up to 14.5%. See below.

Weekly short positions as a percentage of market cap:


SYR    17.5
GXY   17.2
ORE    15.6
ING     14.7
KLA    14.5
NXT    13.7
GWA  12.5
JBH     11.8
BOQ   10.9
HUB   10.7
SDA    10.4
DMP   10.4
BIN     10.3

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