The Short Report – 12 Dec 2019

Weekly Reports | Dec 12 2019

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

Summary:

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:

10%+


KLA    20.8
GXY   17.3
SYR    15.8
ORE    14.0
SDA    13.9
ING     12.7
GWA  12.2
JBH     11.8
NXT    11.6
NEA    11.3
BGA   11.2
WEB   10.9
MIN    10.9
CGC    10.8
DMP   10.4
BKL    10.3
MTS    10.2


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