Short & Caught: The ASX stocks investors are shorting amid the coronavirus and oil bloodbath
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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.
Stockhead’s two preferred metrics are raw short interest as well as percentage changes in them within the last month.
While lithium miner Galaxy Resources (ASX:GXY) remains anchored at the top of the most shorted ASX stocks, one commodity with a few new entrants on this list was petroleum.
Oil prices were falling even before Monday’s bloodbath, and leading the charge was Senex Energy (ASX:SXY) with 65 million shorted shares against it.
Among stocks between 1 and 5 million shorted shares, this trend continued. The most unlikely targets new to the list are two stocks in the hand sanitiser business, Zoono (ASX:ZNO) and Holista Colltech (ASX:HCT).
Both have risen a staggering amount in recent weeks, but shorters have begun to target them, albeit modestly for now with just over 200,000 shorted shares each.