Short & Caught is Stockhead’s fortnightly recap of which ASX small cap stocks are heavily shorted. Stocks that are shorted have investors betting that they fall.

Shorting works by selling stocks you do not actually own in the hope of buying them back at a lower price.

Because shorting is restricted under Australian law, any substantial shorting of stocks is worth knowing about even if you own these stocks and only trade long.

Code Name Price Short Interest Short Interest 1 Month Chg % Market Cap
MYR MYER HOLDINGS LTD 0.26 117.46M 42.52 205.32M
NCZ NEW CENTURY RESOURCES LTD 0.25 57.47M 0.21 186.80M
SXY SENEX ENERGY LTD 0.2 55.82M -0.02 291.45M
INR IONEER LTD 0.12 55.18M -1.38 201.59M
CVN CARNARVON PETROLEUM LTD 0.22 53.36M -1.71 328.52M
GXY GALAXY RESOURCES LTD 0.79 52.98M -21.03 321.44M
SXL SOUTHERN CROSS MEDIA GROUP L 0.16 48.23M 61.07 422.74M
FAR FAR LTD 0.01 38.68M -29.35 139.70M
CLQ CLEAN TEQ HOLDINGS LTD 0.19 38.20M -1.62 149.29M
SWM SEVEN WEST MEDIA LTD 0.08 35.86M 18.32 123.04M
AMA AMA GROUP LTD 0.55 30.75M 5.6 358.44M
PDN PALADIN ENERGY LTD 0.12 30.49M -19.98 212.93M
MLX METALS X LTD 0.09 30.48M -10.24 86.19M
BGL BELLEVUE GOLD LTD 0.64 29.41M -2.12 405.82M
BUD BUDDY TECHNOLOGIES LTD 0.01 28.10M -11.26 23.83M
IPD IMPEDIMED LTD 0.04 20.77M 31 41.07M
SYR SYRAH RESOURCES LTD 0.28 19.55M -29.96 111.93M
KAR KAROON ENERGY LTD 0.57 19.12M -23.54 304.14M
EWC ENERGY WORLD CORP LTD 0.07 17.30M -4.94 123.90M
SPL STARPHARMA HOLDINGS LTD 0.98 16.11M 12.07 357.66M
SLC SUPERLOOP LTD 1.11 15.46M 2.28 356.72M
STX STRIKE ENERGY LTD 0.17 15.20M -9.35 281.53M
ALG ARDENT LEISURE GROUP LTD 0.34 13.57M 41.09 158.30M
GRR GRANGE RESOURCES LTD 0.23 13.35M -22.83 271.97M
HT1 HT&E LTD 1.11 11.91M -3.53 310.63M
AVZ AVZ MINERALS LTD 0.06 11.05M -61.68 164.10M
AMI AURELIA METALS LTD 0.3 10.60M 10.54 253.46M
EHE ESTIA HEALTH LTD 1.48 10.18M -17.58 373.62M
ECX ECLIPX GROUP LTD 0.8 9.41M 17.32 241.33M
BOT BOTANIX PHARMACEUTICALS LTD 0.04 9.16M 3.92 40.85M
HAS HASTINGS TECHNOLOGY METALS L 0.07 9.11M 4822158 74.48M
PET PHOSLOCK ENVIRONMENTAL TECHN 0.5 8.87M -28.7 309.65M
EHL EMECO HOLDINGS LTD 1.02 8.67M -12.5 368.55M
FXL FLEXIGROUP LTD 0.94 8.53M 214.18 370.73M
FBR FBR LTD 0.02 7.09M 0.04 41.35M
MRM MMA OFFSHORE LTD 0.08 6.56M 0.12 69.43M
LNG LIQUEFIED NATURAL GAS LTD 0.04 6.29M -49.92 24.80M
REG REGIS HEALTHCARE LTD 1.47 5.59M -38.81 418.04M
DCN DACIAN GOLD LTD 0.44 5.25M -54.73 230.85M
AJM ALTURA MINING LTD 0.04 5.24M -59.11 122.44M
NVA NOVA MINERALS LTD 0.05 5.00M -8.09 49.73M

 

The most shorted ASX small cap right now is retailer Myer (ASX:MYR). The company is gradually opening its stores after closing them for six weeks during the COVID-19 pandemic.

However, it is moving more cautiously than many of its its listed peers including Shaver Shop (ASX:SSG) and Accent Group (ASX:AX1).

Despite oil prices staging a recovery in recent days, energy stocks remain heavily shorted, led by Senex Energy (ASX:SXY) with $55.8m in short interest against it.

Radio station operator Southern Cross Media (ASX:SXL) saw a significant increase in the amount of short interest against it, which jumped 61 per cent to $48.2m.

In the last 12 months the stock has shrunk 82 per cent, bearing the brunt of COVID-19 and the resulting falling advertising revenues.

Buy now, pay later stock FlexiGroup (ASX:FXL) saw a tripling in its short interest to $8.5m.

While the company reported active customers and trading volumes had risen during COVID-19, analysts remain concerned about the impact a long-running economic downturn could have, particularly if it led to defaults by its customers.

One stock shorters may have been wrong on is fibre network operator Superloop (ASX:SLC).

The stock has $15m against it but yesterday it told shareholders it remained on track to reach its previous earnings guidance. The reason was a 30 per cent spike in traffic on its network in the Asia-Pacific region.