The Short Report – 21 Sep 2023

Weekly Reports | Sep 21 2023

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

Summary:

By Greg Peel

Week Ending September 14, 2023.

The ASX200 chopped around last week ahead of spiking early this week, only to tumble once more.

It didn’t last long. The week before last saw the rare occurrence of no stocks shorted by 10% or more, but last week we were back to normal. Not Flight Centre though, rather Pilbara Minerals ((PLS)).

At the risk of sounding like a broken record, as of last week there were a total of 31 stocks shorted 5% or more and of those, eight, or 26%, are “new world” metal miners covering lithium, graphite and rare earths.

The prices of all such metals have seen sharp falls of late, to the extent graphite miner Syrah Resources ((SYR)) has shut down production for the time being, but all are notoriously volatile over time and all remain very much a part of the decarbonisation theme, hence longer-range forecasts remain positive.

Otherwise, we note smash repairer AMA Group ((AMA)) dropped out for the table last week from 6.3% shorted, after a long stay. The stock has fallen -83% from its peak in April, to 4c.

No other stocks saw movements of one percentage point or more. We did see some relief, nevertheless, for discretionary retailers and related stocks – the other well represented cohort. JB Hi-Fi ((JBH)) and Zip Co ((ZIP)) both dropped down a bracket, while Baby Bunting ((BBN)) fell out of the table.

Weekly short positions as a percentage of market cap:

10%+

PLS     10.7


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