The Short Report – 11 Aug 2022

Weekly Reports | Aug 11 2022

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

Summary:

By Greg Peel

Week Ending August 4, 2022.

The rally continued last week for Wall Street and the ASX200 in the wake of a Fed hint the next rate hike may only be 50 points. Since then we’ve had a strong US jobs number and lower CPI.

We can see from the preponderance of red below that the rally has not deterred the shorters on a net basis. There were only two short position changes of one percentage point or more last week, in opposite directions.

The week before last, EML Payments ((EML)) dropped -28% in one day after the Irish central bank, which investors had assumed EML had now satisfied, came back wanting more.

The stock has since rallied back but it seemed enough for some shorters to take profits on the way. EML shorts fell to 7.9% from 9.0%.

Megaport ((MP1)) had been rallying solidly up until early last week when it ran into profit-taking and then became very volatile on a daily basis. Short positions increased to 8.1% from 6.6%.

Bad move. Megaport reported earnings this week and shot up 10% on the day.

Weekly short positions as a percentage of market cap:

10%+
FLT     15.0
BET     12.3
SQ2     11.5
NAN   11.2
LKE    10.8


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