The Short Report – 01 Jul 2021

Weekly Reports | Jul 01 2021

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

Summary:

By Greg Peel

Week Ending June 24, 2021.

It was a wild old week last week for the ASX200, initially plummeting from record highs on confusing Fed signals, immediately bouncing back, and then running into the highly contagious Bondi strain.

Not so wild were movements in short positions last week.

Interestingly, we did see a sizable drop in Kogan ((KGN)) shorts, to 10.6% from 11.8%, and smaller drops for the likes of Temple & Webster ((TPW)) and JB Hi-Fi ((JBH)). All three we can class as “covid winners”, and all three have shot up this week on the Sydney and other lockdowns.

Which would suggests short-covering, except that our week in question ended June 24, and take-off did not occur until June 25. Some relieved shorters there perhaps.

On the other hand, a2 Milk ((A2M)) shorts rose to 6.3% from 5.4% in the period. This stock has been the opposite of a covid winner, falling from over $19 this time last year to just over $6 currently. But while covid did impact, it has been more a case of the competition catching up on the infant formula front.

a2 Milk shares also shot up on June 25, albeit not for long, after announcing new labelling for its products as some sort of counter-attack.

Weekly short positions as a percentage of market cap:

10%+
WEB   10.7
KGN   10.6


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