Weekly Reports | Dec 12 2019
See Guide further below (for readers with full access).
Week ending December 5, 2019
Last week the ASX200 pushed up to new highs before a bit of a scare on the trade war front sparked a serious tantrum.
Said tantrum did not illicit much of a response from the shorters, as a lack of much movement on the table below suggests. There were nevertheless a few individual stories to ponder.
The triple-listed Kirkland Lake Gold ((KLA)) has put more daylight below it at the top of the table with a short position increase to 20.8% from 17.9%. My best guess continues to be the arbitrage opportunity presented by listings in all of Canada, the US and Australia, given the Canadian-based miner does not get much attention in the latter.
Kitchen & bathroom specialist GWA Group ((GWA)) managed to ride out last week’s volatility rather calmly, and its shorts fell to 12.2% from 14.9%. My assumption here would be shorters becoming nervous about the sudden turnaround in Sydney and Melbourne house prices.
Bank of Queensland’s ((BOQ)) announced capital raising has shorts down to 6.0% from 7.4%. Another arbitrage opportunity, to cover with new shares at a discount.
Shorts in Collection House ((CLH)) dropped to 5.5% from 8.2%. See below.
Finally we might note that as of last week, Webjet ((WEB)) was 10.9% shorted and yesterday takeover speculation prompted a 9.6% share price pop.
Weekly short positions as a percentage of market cap: