Short sellers are back on board FLT. Via Getty
Short & Caught: Short sellers already booking Flight Centre seats as most likely to crash in ’23
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- After a short reprieve Flight Centre starts 2023 back on top of ASX most likely to crash bet
- Betmakers climbs again to become second most shorted ASX stock
- Several lithium and resources stocks start year in top 50
How does shorting work?
Short sellers effectively borrow a stock from a broker, and go wager it (sell it) on the open market. The plan is to then buy the same stock back later after it’s made a hefty drop in price. That done, the short seller buys it back at the lower price and returns it to the lender.
The difference between the sell price and the buy price is the short seller’s profit. Investors are in effect betting they will fall.
Because shorting is restricted under Australian law (and because it’s an all or nothing bloodsport) any substantial shorting of stocks is worth knowing about, even if you only trade long.
And perhaps there’s method in the madness.
Stockhead has utilised the number of short positions as a percentage of total shares on issue. The most ASX shorted stocks (excluding CDIs) all have 5% or more.
The most shorted stocks on ASX
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Short positions | Shares on issue | % short positions |
|---|---|---|---|---|
| FLT | FLIGHT CENTRE TRAVEL ORDINARY | 29,529,300 | 200,154,524 | 15% |
| BET | BETMAKERS TECH GROUP ORDINARY | 122,678,904 | 942,052,401 | 13% |
| PPT | PERPETUAL LIMITED ORDINARY | 7,451,571 | 57,308,133 | 13% |
| MP1 | MEGAPORT LIMITED ORDINARY | 17,734,218 | 158,165,115 | 11% |
| SYA | SAYONA MINING LTD ORDINARY | 911,572,102 | 8,685,742,009 | 10% |
| CXO | CORE LITHIUM ORDINARY | 158,433,544 | 1,841,844,522 | 9% |
| BRG | BREVILLE GROUP LTD ORDINARY | 10,990,322 | 142,781,365 | 8% |
| CHN | CHALICE MINING LTD ORDINARY | 27,603,503 | 376,447,194 | 7% |
| ZIP | ZIP CO LTD.. ORDINARY | 55,882,330 | 765,365,865 | 7% |
| LKE | LAKE RESOURCES ORDINARY | 100,489,797 | 1,391,670,546 | 7% |
| NXT | NEXTDC LIMITED ORDINARY | 32,190,044 | 456,699,580 | 7% |
| PBH | POINTSBET HOLDINGS ORDINARY | 21,372,191 | 305,679,271 | 7% |
| TPW | TEMPLE & WEBSTER LTD ORDINARY | 8,242,234 | 122,949,702 | 7% |
| VUL | VULCAN ENERGY ORDINARY | 9,480,258 | 143,435,301 | 7% |
| ABB | AUSSIE BROADBAND ORDINARY | 15,562,574 | 237,665,276 | 7% |
| NAN | NANOSONICS LIMITED ORDINARY | 19,440,374 | 302,029,520 | 6% |
| DMP | DOMINO PIZZA ENTERPR ORDINARY | 5,724,599 | 89,089,088 | 6% |
| BRN | BRAINCHIP LTD ORDINARY | 107,078,459 | 1,726,862,144 | 6% |
| JBH | JB HI-FI LIMITED ORDINARY | 6,610,601 | 109,333,981 | 6% |
| CUV | CLINUVEL PHARMACEUT. ORDINARY | 2,961,766 | 49,410,338 | 6% |
| ARB | ARB CORPORATION. ORDINARY | 4,822,345 | 81,971,722 | 6% |
| AMA | AMA GROUP LIMITED ORDINARY | 62,631,444 | 1,073,070,217 | 6% |
| MTS | METCASH LIMITED ORDINARY | 54,323,037 | 965,541,602 | 6% |
| SGM | SIMS LIMITED ORDINARY | 10,849,307 | 193,147,649 | 6% |
| NIC | NICKEL INDUSTRIES ORDINARY | 153,222,197 | 2,731,273,497 | 6% |
| 29M | 29METALSLIMITED ORDINARY | 26,529,608 | 481,356,099 | 6% |
| PNI | PINNACLE INVESTMENT ORDINARY | 11,067,896 | 201,264,056 | 5% |
| IEL | IDP EDUCATION LTD ORDINARY | 15,241,822 | 278,336,211 | 5% |
| AMI | AURELIA METALS LTD ORDINARY | 67,143,428 | 1,237,437,216 | 5% |
| NVX | NOVONIX LIMITED ORDINARY | 26,079,817 | 486,774,622 | 5% |
| CGC | COSTA GROUP HOLDINGS ORDINARY | 24,287,419 | 464,546,466 | 5% |
| AWC | ALUMINA LIMITED ORDINARY | 150,514,430 | 2,901,681,417 | 5% |
| FFX | FIREFINCH LTD ORDINARY | 60,828,759 | 1,181,243,221 | 5% |
| BLD | BORAL LIMITED. ORDINARY | 56,246,837 | 1,103,088,419 | 5% |
| BOQ | BANK OF QUEENSLAND. ORDINARY | 32,963,309 | 652,485,010 | 5% |
| UMG | UNITED MALT GROUP ORDINARY | 15,109,129 | 299,179,135 | 5% |
| PME | PRO MEDICUS LIMITED ORDINARY | 5,150,756 | 104,432,253 | 5% |
| WEB | WEBJET LIMITED ORDINARY | 18,666,654 | 382,536,484 | 5% |
| PDN | PALADIN ENERGY LTD ORDINARY | 141,873,248 | 2,979,970,830 | 5% |
| SHV | SELECT HARVESTS ORDINARY | 5,755,539 | 120,950,818 | 5% |
| MYX | MAYNE PHARMA LTD ORDINARY | 82,762,997 | 1,739,815,508 | 5% |
| IMU | IMUGENE LIMITED ORDINARY | 304,554,289 | 6,421,715,706 | 5% |
| ING | INGHAMS GROUP ORDINARY | 17,587,418 | 371,679,601 | 5% |
| LTR | LIONTOWN RESOURCES ORDINARY | 103,916,551 | 2,196,435,350 | 5% |
| GUD | G.U.D. HOLDINGS ORDINARY | 6,663,638 | 140,894,696 | 5% |
| MFG | MAGELLAN FIN GRP LTD ORDINARY | 8,447,052 | 181,509,883 | 5% |
| ACL | AU CLINICAL LABS ORDINARY | 9,348,818 | 201,834,015 | 5% |
| GOR | GOLD ROAD RES LTD ORDINARY | 48,509,898 | 1,075,932,298 | 5% |
| CXL | CALIX LIMITED ORDINARY | 8,022,351 | 180,450,691 | 4% |
| CIA | CHAMPION IRON LTD ORDINARY | 22,351,277 | 517,193,126 | 4% |
Flight Centre starts 2023 as ASX’s most shorted stock
Well. That was a short flight.
Flight Centre (ASX:FLT) ended 2022 as the ASX’s most shorted stock after staying there comfily throughout much of the year. And now FLT is starting 2023 on top as well.
Adversely affected by the COVID-19 pandemic, the badly knocked about ASX travel sector – and FLT – were recovering throughout quietly in the corner of the bourse last year as Australia’s borders creaked open for domestic and international voyagers.
But the short selling mind, ever not-so-secretly yearning to be front seat when the next Boeing slides off the runway, still hope there may be turbulence en route for FLT in 2023, despite its share price rising ~2.4% in the past month.
Betmakers moves to 2nd most shorted stock
Always a good contrary bet, Betmakers Technology Group (ASX:BET), which overtook FLT as the most shorted ASX stock in November, was enjoying its own Christmas reprieve as its short position almost cleft in twain in December to 8%.
That was a short break too.
BET’s short position has once again risen and is now in equal second with perpetual short bet, the fund manager aptly called Perpetual (ASX:PPT) at 13%.
BET operates a platform model providing the back-end technology for bookmakers primarily in horse racing.
The ASX’s compliance unit sent a list of questions to BET in December about what’s now being referred to as the “Tripp payment” – a $15 million award to entrepreneur Matthew Tripp who holds stakes in BetMakers and the online bookmaker Betr.
The gambling tech company has seen its shares fall ~10% in the past month and 26% in the past six months.
The PPT short position has risen 1% into January. On December 23 shareholders of former rival fund manager Pendal (ASX:PDL) supported the company’s takeover by PPT in a $2 billion deal.
The PPT share price has risen 5.72% in the past month.
The FLT, BET & PPT share price today:
Resources stocks in the top 50
Several resources stocks have found themselves in the top 50 most shorted ASX stocks heading into 2023.
Among lithium stocks on the ASX most shorted list is Sayona Mining (ASX:SYA), Core Lithium (ASX:CXO) and Lake Resources (ASX:LKE).
Weak investor sentiment has continued to impact lithium stocks over the past few months along with a softening of lithium prices from their record highs.
Nickel Industries (ASX:NIC) has a short position of 6%. As Stockhead’s Josh Not as Short as Gregor Chiat reported, Nickel is one of a host of commodities currently running at very low global stock levels.
Demand out of the EV battery world has also supported prices for the metal it’s up some ~50% across 2022, but took a tumble last week.
The NIC share price has risen ~11% in the past month and more than 19% in the past six months.
The SYA, CXO, LKE & NIC share price today:
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