The Short Report – 26 May 2022

Weekly Reports | May 26 2022

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By Greg Peel

Week Ending May 19, 2022.

Last week the ASX200 rallied back from a Chinese lockdown low of 6935 to 7182 by last Wednesday. Thursday brought a US Target-related plunge but since then the index is almost back to where it fell from.

Only one stock saw a change in short position of one percentage point or more. In last week’s Report I highlighted shorts in Betmakers Technology ((BET)) have risen to 16.6% from 13.8%. Last week they fell to 13.4%. So there you go.

There was otherwise little more than shuffling around at the top of the table and little change towards the bottom. Small short increases brought Webjet ((WEB)) back into the 10%-plus shorted bracket and AI company Appen ((APX)) also snuck in for a bracket debut.

A small decrease saw EML Payments ((EML)) sneak out.

I highlighted in last week’s Report the growing number of stocks moving into the 5% bracket. That lot continued to grow last week with the returns of City Chic Collective ((CCX)) and a2 Milk ((A2M)) after a hiatus, along with a stock called Australian Strategic Materials ((ASM)).

The company is involved in rare earths mining and sheep and cattle breeding. As you do.

The growing list of stocks shorted 5% or more reflects a lingering feeling of investor nervousness, not trusting that the rally back over 7000 is sustainable.

Weekly short positions as a percentage of market cap:

FLT     17.1
BET     13.4
NAN   12.0
PNV    11.2
WEB   10.0
APX    10.0

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