The Short Report – 20 Feb 2020

Weekly Reports | Feb 20 2020

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

Summary:

Week ending February 13, 2020

Last week saw the ASX200 begin a stuttered rally that ultimately has led to new all-time highs this week. Coronavirus fears ebbed and flowed over the period.

The earnings result season began to quietly ramp up last week ahead of this week’s deluge of reports. But in terms of movements in short position of one percentage point or more, of which there were four last week, only one of those companies had reported.

Pinnacle Investment Management’s ((PNI)) solid result the week before sparked a rally in the stock, but also an increase in shorts to 8.1% from 7.1%. That rally has continued unabated, which appears to have spooked the shorters, as shorts fell back to 6.9% last week.

Metcash ((MTS)) reports out-of-cycle, but the stock has had a solid run since the German retreat (Kaufland). Shorts increased to 11.0% last week from 10.0% so it appears the shorters still want blood.

Nufarm ((NUF)) also reports out-of-cycle and has been rallying since the company reported the sale of its LatAm business, due to be settled shortly. The sale will alleviate the company’s debt problem in the face of the drought, and there’s also been a bit of rain about of late. Nufarm shorts fell to 6.8% from 8.5% last week.

Speaking of drought, and bushfires, and floods, Inghams Group ((ING)) shorts rose to 13.8% from 12.2% last week. The company reports tomorrow.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+
GXY   19.7
SYR    16.9
ING     13.8
ORE    13.6
SDA    13.0
CGC    11.6
GWA  11.4
MTS    11.0
NEA    10.9
BGA   10.7
WEB   10.5
JBH     10.2


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