The Short Report – 01 Apr 2021

Weekly Reports | Apr 01 2021

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

Summary:

Week ending March 25, 2021.

The ongoing zig-zag of the ASX200 continued into last week –this time a rally– and again into this week. Net result, not much.

While the number of stocks with short positions of 5% or more remained unchanged last week, as the table below suggests there was actually quite a lot of position reduction going on.

All up there was a total of no less than seven short position movements of one percentage point or more.

Webjet ((WEB)) shorts jumped to 12.0% from 10.8% -- a no-brainer with Brisbane going back into lockdown. Flight Centre ((FLT)) shorts rose to 8.7% from 7.9%.

I noted last week that Tassal Group ((TGR)) shorts had moved from 13.0% to 11.5% and back to 13.0% over three weeks, and perhaps this represented a blip in ASIC data. Last week they were back to 10.1%.

The stock did rally last week nonetheless on “inside” trading. “Inside” trading should not be confused with “insider” trading. The former reflects company executives buying/selling their own stock which is perfectly legal as long as sufficient disclosures are made, and there are no subsequent share price-moving announcements made (drawing an ASIC investigation).

The latter reflects buying/selling by parties either inside the company or out privy to share price-moving information which the company has not yet made public. This can result in gaol time.

Then we have Bravura Solutions ((BVS)), the shorts of which have moved from 6.6% to 7.7% and last week down to 5.2% over a period in which the share price did not much. It has since dropped fairly sharply. Draw your own conclusions.

Covid-beneficiary Temple & Webster ((TPW)) spent all month rallying before tipping over last week. It’s back at 6.0% shorted from below 5%.

Avita Medical ((AVH)), Myer ((MYR)) and Freedom Foods ((FNP)) all dropped out of the 6% range to below 5% last week.

Avita has been trending down all month while Myer has rallied post earnings result. So likely profit-taking in one and short-covering in the other.

Freedom Foods went into a trading halt last June at $3.00 and came back on last week at 48c. A great opportunity to close out longstanding shorts and head off to lunch.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+
WEB   12.0
TGR    10.1


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