The Short Report – 01 Oct 2020

Weekly Reports | Oct 01 2020

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


Week ending September 24, 2020.

Last week saw the ASX200 plunge again along with the Nasdaq before bouncing hard on (would you believe) domestic issues, specifically more state border restriction easing and the first steps towards easing in Victoria.

We might note from the table below that there’s a complete lack of widespread short positions in the current market, with just a handful of exceptions. Never before in the history of this Report have there been only two stocks shorted more than 10%, one over 9% and one over 8%. It’s only when we get down into the 5-6%-plus area do we see a bit more interest.

And in those brackets, last week’s activity mostly reflected simple shuffling around, although we do notice shopping mall landlord UR Westfield ((URW)) popping in at the bottom. The stock has been highly volatile of late on every subtle shift in the reopening theme.

Speaking of highly volatile, Mesoblast ((MSB)) has also been yo-yoing around lately as only a biotech can, on the “will it/won’t it” receive its drug approval theme. Mesoblast shorts rose to 6.0% last week from under 5%.

Conversely, but on the same “will it/won’t it” theme, the lottery that is Jumbo Interactive ((JIN)) dropped from 6.3% shorted the week before to off the 5%-plus table last week on speculation of a possible deal with WA’s Lotterywest. That deal was confirmed yesterday.

Consumer finance provider and new BNPL aspirant FlexiGroup ((FXL)) had a tough week last week share price-wise, without any new news, and shorters clearly cashed in. FlexiGroup shorts fell to 6.7% from 8.2%.

Other than that, the action was again all in the travel agent industry. See below.

Weekly short positions as a percentage of market cap:

WEB   17.7
MYR   11.0

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