Weekly Reports | Sep 14 2023
See Guide further below (for readers with full access).
Summary:
By Greg Peel
Week Ending September 7, 2023.
The ASX200 plateaued last week after having recovered its losses from mid-August. This week Wall Street has been crushed by Apple, so we followed, exacerbated by the biggest week of ex-dividends.
Stop Press: as of last week there were no stocks shorted by 10% or more. I don’t believe this has ever happened in the history of this Report. Longstanding incumbent Flight Centre ((FLT)) dropped to 9.8% shorted from 10.5%, but recent moves suggest it could well be back up again by this week.
The big mover last week was Lake Resources ((LKE)), shorts in which fell to 5.9% from 8.3%. See below.
Shorts in perennial shorters’ favourite JB Hi-Fi ((JBH)) fell to 7.0% from 8.3%. This stock has chopped around since reporting in August but posted a modest rally last week. This may have prompted short covering, but JB Hi-Fi is a good candidate for long-short plays amongst discretionary retailers, so no conclusions can be drawn.
Shorts in Elders ((ELD)) had moved up a percentage bracket each of the past three weeks, but last week only ticked up to 9.1% from 9.0%.
I noted in last week’s Report that rare earths miner Arafura Resources ((ARU)) made a debut on the 5%-plus shorted table, having posted a bigger than expected FY23 loss due to the pullback in neodymium/praseodymium price.
Arufura joined a large cohort of “new world” metal miners on the table, which is challenged only by the list of discretionary retailers.
Well, last week another miner debuted, being Tietto Minerals ((TIE)). This one is a more old-fashioned gold miner, albeit in Africa's Ivory Coast.
Weekly short positions as a percentage of market cap:
10%+
No stocks
Out: FLT
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