The Short Report – 12 May 2022

Weekly Reports | May 12 2022

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


By Greg Peel

Week Ending May 5, 2022.

Two weeks ago the ASX200 tipped over violently as resources stocks were crushed, largely due to Chinas lockdowns. Last week the index levelled out until Friday, when it tipped over again.

No stocks within the 5%-plus shorted table changed position by a percentage point or more last week, but there were some notable additions at the bottom end.

Firstly we note that while Polynovo ((PNV)) shorts only rose to 10.2% from 9.9% last week, from the next day the stock rallied 30% on an update.

Down at the low end, Ansell ((ANN)) has appeared at the bottom after rallying 9% since late April. One presumes the rally can be put down the ongoing omicron wave, not just in China, maintaining demand for the companys PPE products. ButAnsell has been thrown out with the bathwater this week.

Bank of Queensland ((BOQ)) has reappeared in the wake of the RBA rate rise, its share price falling given its exposureto Queensland mortgages.

Lendlease ((LLC)) has also been on a downward path, with rate rises potentially impacting residential sales.

Retailers City Chic Collective ((CCX)) and BWX ((BWX)) are not new to the table, but again we can cite rates rises and falling consumer confidence. BWX cut its guidance last week and promptly fell -30%.

Bega Cheese ((BGA)) has been under pressure from rising milk prices.

And finally, AGL Energy ((AGL)) is not a surprise newbie, a loose Cannon possibly preventing the planned demerger.

Weekly short positions as a percentage of market cap:


FLT 17.3
BET 13.8
NAN 12.2
PNV 10.2

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