The Short Report – 29 Apr 2021

Weekly Reports | Apr 29 2021

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

Summary:

Week Ending April 22, 2021.

By Greg Peel

Last week was a net negative for the ASX200 but included a sudden -100 point plunge on the morning of April 21, following a no-apparent-reason sell-off on Wall Street, only to subsequently regain almost all of that loss in the afternoon.

As I write, the index is trying to cement a break above the 7000 level.

One might expect such a plunge would be an opportunity for further reductions in short positions, which has been the trend of late, but no. Indeed, only one stock moved down the 5%-plus shorted table while all other moves were up.

Webjet ((WEB)) dropped to 9.8% shorted from 10.3% to ensure that for the first time in history (of this Report), there is not one stock shorted by 10% or more.

For many years the table would show perhaps ten stocks in the 10%-plus bracket and the top markers shorted in excess of 20%.

Interestingly, in falling into the 9% bracket thanks to a share price rally based on the Trans-Tasman bubble, Webjet has met peer Flight Centre ((FLT)), which saw its shorts rise to 9.2% from 8.9%. The difference between the two is Flight Centre’s greater international exposure, and things aren’t looking too good in many parts of the world.

Otherwise we see a raft of bracket creep among the more popular names to short at present and after weeks of the overall table reducing in number, three additions last week. They are wealth platform Hub24 ((HUB)), Amazon lookalike Kogan ((KGN)) (in its business, not its size) and litigation financing company Omni Bridgeway ((OBL)).

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+

No stocks

9.0-9.9

WEB, RSG, TGR, FLT


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