Short & Caught: The ASX small caps investors are shorting right now
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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.
The list was once again led by retailer Myer (ASX:MYR) was again the most shorted with over 100 million shares.
As for stocks that saw big rises in short interest in recent days, one was under siege gold producer Red 5 (ASX:RED). Last week the company plunged after revealing its production metrics for the Darlot Mining Hub.
It anticipates production between 90,000 and 98,000oz of gold at an average all-in sustaining cost of between $1,830 and $2,030 per ounce.
Near 10-bagger betting play BetMakers (ASX:BET) is another new target. After falling from 39 cents to 9 cents in March but then rising above 40 cents this month, it now has over a million in shorted shares
The company undertook a $35 million capital raising earlier this month and plans further expansion into the US market.
Biotech Imugene (ASX:IMU) is another with an amount that has more than doubled in the last month.
It specialises in immunotherapy rising cancer treatment that seeks to harness the body’s immune system against cancer tumours and is undertaking a Phase II clinical trial for its HER-Vaxx drug.
Theme park operator Ardent Leisure Group (ASX:ALG) is also a shorters target. Travel and leisure stocks as Ardent were heavily hut by COVID-19 but it anticipates re-opening many of its Queensland sites next month.