The Short Report – 19 Nov 2020

Weekly Reports | Nov 19 2020

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


Week ending November 12, 2020.

Last week was Vaccine Week across the globe, and the ASX200 did its bit by rallying strongly.

I noted in last week’s Report that the 5%-plus shorted table had grown slightly, for the first time in weeks, but last week’s rally nipped that in the bud swiftly. A net five stocks fell out of the table.

I also highlighted a big move up in shorts for nickel miner Western Areas (to 9.6% from 6.6%) due to a sizeable guidance downgrade. Last week shorts increased to 11.0%, to join Webjet in the 10%-plus shorted club.

Webjet ((WEB)) remains top of the pops but shorts dropped to 13.2% last week from 15.2% the week before. Vaccine equals travel.

The one stock entering the table last week, on debut, was Alkane Resources ((ALK)), a metals exploration company that received attention a while back when rare earths were all the rage. The company has recently provided a positive update on its drilling program in NSW, but it’s a gold-copper project, not neodymium.

The stock rallied on the news and then last week, mysteriously tanked. I say mysteriously as there has been no new news since and FNArena database brokers don’t cover the stock. Alkane debuted at 5.1% shorted.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

WEB   13.2
WSA   11.0

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