The Short Report – 14 Oct 2021

Weekly Reports | Oct 14 2021

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

Summary:

By Greg Peel

Week Ending October 7, 2021.

Last week saw saw the ASX200 chop around and go nowhere, providing little inspiration for shorting action.

I noted last week that shorts in a2 Milk ((A2M)) dropped to 5.8% from 6.3% the week before, and this was unfortunate timing perhaps, given the stock fell -7.7% last week on news of a shareholder class action.

Last week shorts in a2 Milk simply ticked down to 5.7% from 5.8%, and yesterday the stock shot up 13.5% in sympathy with Bubs Australia ((BUB)), which jumped 38% on reported growth in China.

Announced reopening dates saw the travel agents fire up last week, but the shorters remain undeterred. Shorts in Flight Centre ((FLT)) grew to 10.4% last week from 10.2%, and in Webjet ((WEB)) to 9.4% from 8.9%.

Smash repairer stable AMA Group ((AMA)) saw a big jump back in September when reopening “road maps” were first flagged, before sliding quietly back again, and then picking up once more last week as lockdowns were lifted.

AMA should be a beneficiary of cars back on the road, but last week its shorts rose to 7.1% from 6.8%. Market concerns about the company's financial health are sticking around for longer.

Small moves all, but no position changed by one percentage point or more last week.

Weekly short positions as a percentage of market cap:

10%+
FLT     10.4


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