The Short Report

By Rudi Filapek | More Articles by Rudi Filapek

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

Summary:

Week ending September 10, 2020

Last week on the ASX was all about a tech sector we don’t have correcting from a parabolic rally we didn’t experience triggering a correction in an unrelated index, being the ASX200.

Despite the volatility, short-side traders did not notably respond. All the red and green movements on the table below represent nothing more than bracket creep.

There was nevertheless one positon change of one percentage point or more. Webjet ((WEB)) rose to 16.8% shorted from 15.4% the week before.

In historic terms, 16.8% is a far cry from the 20% plus positions seen in other stocks in years gone by. But this position stands out significantly on the basis that the next most shorted is Myer at 10.8%, then InvoCare at 9.5%, then only three stocks over 8% and only two over 7%.

In days gone by there could be more than ten stocks 10% plus shorted, let alone in the nines, eights and sevens.

So why is Webjet the shorters’ pin-up boy? Stablemates Flight Centre ((FLT)) and Corporate Travel Management ((CTD)) are only 6.7% and 6.5% by comparison.

Analysts noted following the result season just past that Webjet is more exposed to domestic borders remaining closed, more so relatively than the international border remaining closed. While there is a concerted push to re-open state borders, it remains clear Queensland and WA will continue to dig in their heels.

Webjet has been forced to go to the market once, post covid, for emergency capital, and the 16.8% short position suggests shorters are expecting another round will be needed.

No Movers & Shakers this week.

Weekly short positions as a percentage of market cap:

10%+

WEB   16.8
MYR   10.8

In: MYR

9.0-9.9

IVC

Out: MYR

8.0-8.9%

ING, CUV, FXL

In: CUV, FXL                        Out: IFL

7.0-7.9%

BOQ, ORE

Out: CUV, FXL, NEA

6.0-6.9%

FNP, PNV, NEA, FLT, MTS, A2M, CTD, GXY, AVH, JIN, SGM, BIN

In: NEA, AVH, JIN               Out: EOS

5.0-5.9%

LOV, HUB, SUL, EOS, SEK, ALG, BEN, SXL, NEC, PGH

In: EOS, HUB, SXL, NEC

Out: AVH, JIN, Z1P, BUB, JBH

Movers & Shakers

See above.

ASX20 Short Positions (%)

[Note: ASX20 index changes announced recently will not have become effective until next week’s Short Report].

Code Last Week Week Before Code Last Week Week Before
ALL 4.2 4.2 NCM 0.3 0.1
ANZ 0.9 0.8 RIO 1.8 1.7
BHP 4.2 4.3 SCG 1.7 1.3
BXB 0.3 0.2 SUN 0.7 0.6
CBA 0.7 0.6 TCL 0.8 0.5
CSL 0.4 0.3 TLS 0.5 0.3
GMG 0.4 0.5 WBC 0.8 0.7
IAG 0.9 0.8 WES 0.5 0.5
MQG 0.4 0.3 WOW 0.3 0.3
NAB 1.2 1.1 WPL 1.5 1.3

To see the full Short Report, please go to this link

Guide:

The Short Report draws upon data provided by the Australian Securities & Investment Commission (ASIC) to highlight significant weekly moves in short positions registered on stocks listed on the Australian Securities Exchange (ASX). Short positions in exchange-traded funds (ETF) and non-ordinary shares are not included. Short positions below 5% are not included in the table below but may be noted in the accompanying text if deemed significant.

Please take note of the Important Information provided at the end of this report. Percentage amounts in this report refer to percentage of ordinary shares on issue.

Stock codes highlighted in green have seen their short positions reduce in the week by an amount sufficient to move them into a lower percentage bracket. Stocks highlighted in red have seen their short positions increase in the week by an amount sufficient to move them into a higher percentage bracket. Moves in excess of one percentage point or more are discussed in the Movers & Shakers report below.

Rudi Filapek

About Rudi Filapek

Rudi Filapek-Vandyck is approaching three decades as an active journalist. During the nineties, Rudi successfully built a financial news wire in Europe. After arriving in Australia in 2000, he worked on several projects before founding FNArena.

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