Short and Caught: The ASX stocks investors are shorting right now

Link copied to
clipboard

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.

Stockhead’s two preferred metrics are raw short interest as well as percentage changes in them within the last month.

The most shorted

Galaxy Resources (ASX:GXY) and Syrah Resources (ASX:SYR) are still the two most shorted stocks as the markets for their commodities (lithium and graphite) remain flat. While Syrah’s short interest moved little, Galaxy’s rose by 11 per cent.

Moving up the list is Queensland-based zinc producer New Century Resources (ASX:NCZ) which is now the 6th most shorted and has 53 million shares shorted. Despite meeting its operational targets, zinc prices fell 9 per cent last year.

Infant formula exporter Bubs Australia (ASX:BUB) also rose up the list to over 25 million, a 50 per cent rise in the last month.

Other stocks that have been shorted for a while but made big climbs up the list include medical software technology company ImpediMed (ASX:IPD) and water treatment stock Phoslock Environmental Technology (ASX:PET).

The newly shorted

Down nearly 90 per cent in the last 12 months, Canada-focused oil and gas explorer Calima Energy (ASX:CE1) is a new target of shorters.

It has a project plan but is yet to make a final investment decision — it is looking for financing and a joint venture partner. The company admitted in its most recent quarterly that current low gas prices did not help.

Construction and engineering firm Decmil Group (ASX:DCG) is another target of shorters, more than halving in the last month after a not-so-great update two days before Christmas.

Women’s fashion retailer Mosaic Brands (ASX:MOZ) saw its sales drop over the summer as a result of the bushfires and it’s been a shorters’ target since.

share

• 
• 
• 
• 

Link copied to
clipboard

SUBSCRIBE

Get the latest Stockhead news delivered free to your inbox.

Name*

Email*

Hidden

Email Lists

Morning Update

Lunch Update

Market Close Update

Weekend Update

It's free. Unsubscribe whenever you want.

By proceeding, you confirm you understand that we handle personal information in accordance with our Privacy Policy.

You might be interested in

News

Rise and Shine: Everything you need to know before the ASX opens

April 17, 2024 | Gregor Stronach

News

Closing Bell: ASX crushed with all 11 sectors deep in the red, but there's some good news from China

April 16, 2024 | Eddy Sunarto

News

Top 10 at 10: Gold discoveries, M&A, and a $50m payday

April 16, 2024 | Reuben Adams