The Short Report – 18 Feb 2021

Weekly Reports | Feb 18 2021

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


Week ending February 11, 2021.

Wow. Never in the history of this Report has one week seen so little change in short positions on the ASX, by a considerable margin.

The ASX200 posted a net rally over the week, once the whole GameStop debacle ended. We might put such a lack of shorting activity down to it being the first week of the local results season, but so few are the reports in the first week this seems unrealistic.

I might be forced to suspect a possible problem with ASIC data, but there was some shuffling around of stocks in each percentage bracket, a couple of moves of more than one percentage point in the 10%-plus bracket, and EML Payments ((EML)) did slip a bracket, to 5.8% from 6.5%.

Just as well for someone. The company reported yesterday and shot the lights out, rallying 16%.

Otherwise, we note Webjet ((WEB)) shorts fell to 12.3% from 13.3% as vaccination rollouts offer some hope for a reopening of the border one day, while Northern Star Resources’ ((NST)) shorts fell to 10.3% from 11.6%.

I have been suggesting all along, in defiance of other theories, that the large short position in Northern Star represented a play on the merger with Saracen Minerals, implying Northern Star was the overvalued partner. Since the merger was completed this week, Northern Star shares have fallen over -7%.

Stand by for a short position reduction in next week’s Report.

No Movers & Shakers this week.
Weekly short positions as a percentage of market cap:

WEB   12.3
TGR    12.1
NST     10.3

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