The Short Report – 19 Nov 2020

Weekly Reports | Nov 19 2020

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

Summary:

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:

10%+
WEB   13.2
WSA   11.0


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