The Short Report – 15 Sep 2022

Weekly Reports | Sep 15 2022

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

Summary:

By Greg Peel

Week Ending September 8, 2022.

Last week saw a big drop in the ASX200 toward the end of the week as Wall Street responded in shock to Jerome Powell’s uber-hawkish Jackson Hole speech. On the last day, a bounce began which would ultimately be worth 270 points, until the US CPI result.

With the result season done and dusted last week, most of the activity was to rebuild short positions. Three stocks saw short increases of one percentage point or more, being Megaport ((MP1)), IDP Education ((IEL)) and Bank of Queensland ((BOQ)). See below.

That’s not counting another. This from last week’s Report:

Inghams Group’s ((ING)) result missed expectations, and again the stock fell sharply, so Inghams has disappeared right off the table from 8.2% shorted. However I’d strongly wager this is an ASIC data blip and Inghams will reappear next week.

It did, at 7.7%.

Otherwise we might note the return to the 5%-plus shorted table of Perpetual ((PPT)) – the wealth manager favoured amongst brokers – JB Hi-Fi ((JBH)) – which has confounded shorters for decades – and Alumina Ltd ((AWC)) – which is indeed looking at lower dividends.

Weekly short positions as a percentage of market cap:

10%+
FLT     15.2
BET     13.2
SQ2     10.5


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