The Short Report – 02 Feb 2023

Weekly Reports | Feb 02 2023

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


By Greg Peel

Week Ending January 25, 2023.

The only way was up for the ASX200 in January, and last week was no exception. That theme has continued into this week, but not for all stocks.

Megaport ((MP1)) is a case in point, after falling -24% on Tuesday following a weak trading update. Megaport shorts fell to 9.8% last week from 10.2%, but we’ll see what this week brings.

Following its acquisition of Pendal Group, Perpetual ((PPT)) has disappeared off the 5%-plus shorted table from 12.6%. Deal done.

I can’t recall the last time (if ever) there were only two stocks more than 10% shorted. Indeed, there are very few stocks more than 7% shorted. This could be put down to (a) the January rally and (b) the start of earnings result season this week.

Flight Centre ((FLT)) nonetheless remains steadfastly atop the table on 13.9%. Yesterday, Flight Centre completed an institutional placement to raise funds for an acquisition, and the stock shot up 8%.

It is unclear how many institutions make up that 13.9%, with the placement providing the opportunity to close shorts. We’ll see where we end up in next week’s data.

Lithium miners continue to interest the shorters, with Liontown Resources ((LTR)) jumping up to 7.5% shorted last week from 6.1% to join Lake Resources ((LKE)), behind Core Lithium ((CXO)) and Sayona Mining ((SYA)) in the 9% bracket. 

Weekly short positions as a percentage of market cap:

FLT     13.9
BET     12.7

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