The Short Report – 18 Feb 2021

Weekly Reports | Feb 18 2021

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

Summary:

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:

10%+
WEB   12.3
TGR    12.1
NST     10.3


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