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

With the graphite and lithium markets in a lull, Syrah Resources (ASX:SYR) and Galaxy Resources (ASX:GXY) take up spots one and two among the most shorted. Both have over $60m in short interest against them.

Earlier this month, Syrah revealed that due to falling prices it would be cutting production, and shares fell over 30 per cent. After reaching $1.30 in April, Syrah shares now sit at 50c.

Read more: The graphite party looks to be over (for now) – here’s what analysts prefer instead

Dacian Gold (ASX:DCN) is also heavily shorted but has continued to rise after falling as low as 38c this year due to production cuts. But it helps to mine a commodity that is going up rather than down.

Among the most shorted non-resources stocks included LiveTiles (ASX:LVT), which announced a $50m capital raise last week, and retailers Myer (ASX:MYR) and Adairs (ASX:ADH).

FBR (ASX:FBR) has begun to creep up the list as it continues to bleed cash and is still at a pre-revenue stage.

Code Name Price Short Interest Short Interest 1 Month Chg % Market Cap
SYR SYRAH RESOURCES LTD 0.51 66.10M 7.99 208.75M
GXY GALAXY RESOURCES LTD 1.15 63.75M 2.61 466.81M
MYR MYER HOLDINGS LTD 0.6 59.68M 0.01 488.66M
CLQ CLEAN TEQ HOLDINGS LTD 0.33 43.61M 2.9 257.53M
INR IONEER LTD 0.17 39.19M -0.82 250.75M
NCZ NEW CENTURY RESOURCES LTD 0.28 38.25M 20.44 178.44M
FAR FAR LTD 0.06 36.97M -35.88 370.54M
ANL AMANI GOLD LTD 0 33.33M 0 15.64M
AJM ALTURA MINING LTD 0.08 32.37M -11.77 174.41M
MLX METALS X LTD 0.17 32.08M 0.16 128.95M
GRR GRANGE RESOURCES LTD 0.22 28.41M 0.84 260.40M
MRM MMA OFFSHORE LTD 0.2 28.26M -1.63 171.62M
LNG LIQUEFIED NATURAL GAS LTD 0.26 26.62M -9.52 149.76M
ALG ARDENT LEISURE GROUP LTD 1.02 26.32M 24.76 491.70M
PDN PALADIN ENERGY LTD 0.12 21.62M 8.06 237.23M
SDA SPEEDCAST INTERNATIONAL LTD 1.21 20.26M 1.57 280.50M
EWC ENERGY WORLD CORP LTD 0.09 19.17M 3.49 152.63M
SEA SUNDANCE ENERGY AUSTRALIA LT 0.21 18.87M -33.38 137.51M
DCN DACIAN GOLD LTD 1.6 17.87M 13.02 330.36M
BOT BOTANIX PHARMACEUTICALS LTD 0.23 15.10M 27.91 226.66M
AMI AURELIA METALS LTD 0.49 13.23M 33.42 419.24M
BWX BWX LTD 3.51 12.49M -8.47 438.60M
LVT LIVETILES LTD 0.42 11.12M 53.33 270.87M
SLC SUPERLOOP LTD 1.01 11.03M 13.83 255.83M
CLH COLLECTION HOUSE LTD 1.25 10.74M 0 176.93M
ADH ADAIRS LTD 1.84 9.06M 26.58 298.57M
SPL STARPHARMA HOLDINGS LTD 1.12 8.40M 3.26 421.90M
CAI CALIDUS RESOURCES LTD 0.03 8.37M 0 62.26M
IPD IMPEDIMED LTD 0.17 6.59M 0.34 88.77M
STX STRIKE ENERGY LTD 0.27 6.58M 877.07 409.20M
PPS PRAEMIUM LTD 0.48 5.49M 63.65 193.80M
JHC JAPARA HEALTHCARE LTD 1.17 4.80M 18.9 316.69M
AYS AMAYSIM AUSTRALIA LTD 0.39 4.67M 7.79 112.14M
FBR FBR LTD 0.07 4.32M 6.89 98.25M
MSV MITCHELL SERVICES LTD 0.05 4.03M 8.23 97.57M

The newly shorted

Among the stocks that are now being targeted is virtual networking tech stock Netlinkz (ASX:NET), which is one of 2019’s best performers. It is off its July high of 28c.

Initially its rise was sparked by revenue figures nearly 1,800 per cent better compared with two years ago.

In a similar fashion BidEnergy (ASX:BID) went from 7c to $1.60 between January 2018 and February 2019 but is now only 60c. This company is also now a target.

Another tech stock, Bigtincan (ASX:BTH), may have won a contract with Nike but shorters have begun to short the stock in recent weeks.

Troy Resources (ASX:TRY) is also a newly shorted stock. Heavy rainfall has meant gold production has been less than anticipated.

Code Name Price Short Interest % Change 1 Month Market Cap
DNA DONACO INTL LTD 0.06 173.55k 10,177,100 48.59M
BTH BIGTINCAN HOLDINGS LTD 0.6 42.53k 4,252,900 155.85M
DNK DANAKALI LTD 0.65 18.49k 1,650,400 173.79M
BLK BLACKHAM RESOURCES LTD 0.01 730.77k 174,884.14 46.28M
MCP MCPHERSON'S LTD 2.22 20.74k 15,988.03 234.19M
QMS QMS MEDIA LTD 0.85 89.07k 14,487.38 292.83M
NEU NEUREN PHARMACEUTICALS LTD 2 231 4,515.38 204.79M
EVS ENVIROSUITE LTD 0.28 221.39k 3,635.45 110.66M
TRY TROY RESOURCES LTD 0.12 72.92k 2,586.27 62.17M
PAC PACIFIC CURRENT GROUP LTD 6.6 5.51k 1,377.48 306.82M
MXI MAXITRANS INDUSTRIES LTD 0.23 10.00k 1,193.66 43.49M
BID BIDENERGY LTD 0.61 13.34k 1,191 69.77M
AGY ARGOSY MINERALS LTD 0.08 18.00k 1,169.39 81.16M
PNR PANTORO LTD 0.21 1.10M 934.86 241.07M
STX STRIKE ENERGY LTD 0.27 6.58M 877.07 409.20M
SXE SOUTHERN CROSS ELECTRICAL 0.61 1.20k 856.8 138.49M
PPK PPK GROUP LTD 3.83 1.06k 733.07 306.03M
LPI LITHIUM POWER INTERNATIONAL 0.34 569.50k 499.89 85.32M
MVP MEDICAL DEVELOPMENTS INTERNATIONAL 4.76 6.68k 454.6 315.14M
IMU IMUGENE LTD 0.02 3.16M 384.68 83.03M
NMT NEOMETALS LTD 0.19 280.83k 330.19 103.44M
JRV JERVOIS MINING LTD 0.22 955.74k 306.26 147.58M
ERF ELANOR RETAIL PROPERTY FUND 1.29 90.39k 275.14 166.06M
NET NETLINKZ LTD 0.17 223.64k 273.97 282.54M
RUL RPMGLOBAL HOLDINGS LTD 0.76 30.58k 258.02 166.65M
SMN STRUCTURAL MONITORING-CDI 0.87 1.69k 255.03 93.14M
DEG DE GREY MINING LTD 0.06 394.88k 253.33 52.56M
HWK HAWKSTONE MINING LTD 0.01 1.98M 228.24 10.35M
CAJ CAPITOL HEALTH LTD 0.23 240.27k 227.68 180.58M