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

Code Name Price (I) Short Interest (Shares) Short Interest 1 month % Change Market Cap
GXY GALAXY RESOURCES LTD 1.05 81.38M 10.08 446.33M
SYR SYRAH RESOURCES LTD 0.5 70.51M 1.55 215.11M
MYR MYER HOLDINGS LTD 0.38 61.77M 4.67 312.09M
NCZ NEW CENTURY RESOURCES LTD 0.16 54.52M 12.9 108.44M
CVN CARNARVON PETROLEUM LTD 0.3 54.42M 0.72 469.31M
INR IONEER LTD 0.18 54.14M 2.35 310.78M
CLQ CLEAN TEQ HOLDINGS LTD 0.23 40.08M 0.95 179.15M
SWM SEVEN WEST MEDIA LTD 0.19 35.35M -10.95 292.23M
MLX METALS X LTD 0.09 32.54M 7.9 87.10M
SDA SPEEDCAST INTERNATIONAL LTD 0.79 31.16M 0.24 189.40M
FAR FAR LTD 0.03 30.32M -53.16 309.34M
MRM MMA OFFSHORE LTD 0.16 28.27M -0.06 138.86M
BUB BUBS AUSTRALIA LTD 0.77 26.75M 28.38 439.83M
AJM ALTURA MINING LTD 0.06 24.64M 0.25 153.64M
PDN PALADIN ENERGY LTD 0.09 21.14M 26.06 178.45M
BGL BELLEVUE GOLD LTD 0.62 20.94M 12.89 336.25M
GRR GRANGE RESOURCES LTD 0.23 18.94M 4.13 260.40M
EWC ENERGY WORLD CORP LTD 0.08 18.37M 0.07 152.63M
BUD BUDDY TECHNOLOGIES LTD 0.03 18.36M 7.66 73.84M
LNG LIQUEFIED NATURAL GAS LTD 0.13 14.92M -3.64 72.08M
SPL STARPHARMA HOLDINGS LTD 1.17 14.09M -0.45 454.50M
IPD IMPEDIMED LTD 0.1 13.56M 88.5 53.66M
HT1 HT&E LTD 1.55 13.26M 0.32 425.95M
SLC SUPERLOOP LTD 0.87 12.46M -3.61 318.30M
BOT BOTANIX PHARMACEUTICALS LTD 0.09 11.86M 1.68 85.60M
PET PHOSLOCK ENVIRONMENTAL TECHN 0.73 11.46M 37.42 429.39M
DCN DACIAN GOLD LTD 1.4 11.42M 14.54 319.80M
LVT LIVETILES LTD 0.31 10.14M 35.49 288.17M
OEL OTTO ENERGY LTD 0.03 9.51M 27.43 71.35M
CLH COLLECTION HOUSE LTD 1.09 8.11M 1.48 154.01M
CGB CANN GLOBAL LTD 0.01 7.71M 40.16 39.14M
FBR FBR LTD 0.05 7.51M 2.62 88.19M
NVA NOVA MINERALS LTD 0.06 5.72M 46.07 55.28M
EMR EMERALD RESOURCES NL 0.05 5.01M -33.56 180.58M

For the past several weeks Galaxy Resources (ASX:GXY). and Syrah Resources (ASX:SYR) have been neck and neck as the most shorted stocks.

In recent days Galaxy’s short interest has risen to 80 million shares. Shares in the lithium miner has already been on several rollercoaster rides so far in 2020, but overall since Christmas it’s up 16 per cent.

While the company made a hefty after tax loss in 2019, it says it still achieved strong production volume and quality results at its Mt Cattlin project.

The company admitted some potential deals in China were uncertain but would not provide sales forecasts until clarity returned to the market.

Companies making substantial rises up the list included uranium play Paladin Energy (ASX:PDN), gold explorer Bellevue Gold (ASX:BGL) and cannabis purveyor Cann Global (ASX:CGB).

Yesterday Bellevue announced a 23 per cent boost to its gold resources, which now sit at 2.2 million ounces.

 

The newly shorted

Code Name Price (I) Short Interest (Shares) Short Interest 1 Month % Chg Market Cap
BTH BIGTINCAN HOLDINGS LTD 0.91 480.37k 48,036,500 293.04M
PPE PEOPLE INFRASTRUCTURE LTD 3.72 22.45k 2,245,300 271.67M
CE1 CALIMA ENERGY LTD 0.01 4.53M 1,997,059.88 17.24M
ACF ACROW FORMWORK AND CONSTRUCTION 0.34 60.33k 861,814.31 71.05M
CZI CASSINI RESOURCES LTD 0.09 108.91k 494,945.44 41.49M
MOZ MOSAIC BRANDS LTD 1.75 168.76k 34,482.17 169.42M
RXP RXP SERVICES LTD 0.44 50.00k 20,646.89 72.49M
LYL LYCOPODIUM LTD 6.08 94.16k 10,361.67 241.97M
BSE BASE RESOURCES LTD 0.23 1.16M 6,975.09 281.19M
HCT HOLISTA COLLTECH LTD 0.19 201.26k 1,912.57 50.39M
WKT WALKABOUT RESOURCES LTD 0.17 29.21k 1,881.82 57.61M
MGT MAGNETITE MINES LTD 0 1.82k 1,601.87 4.82M
TRS REJECT SHOP LTD/THE 4.06 116.73k 1,151.57 118.52M
DTC DAMSTRA HOLDINGS LTD 1.07 131.31k 708.57 147.05M
BBN BABY BUNTING GROUP LTD 3.46 858.12k 638.07 455.41M
REX REGIONAL EXPRESS HOLDINGS LT 1.13 69.53k 629.68 121.17M
OLL OPENLEARNING LTD 0.19 82.19k 561.24 26.54M
DEG DE GREY MINING LTD 0.18 3.43M 458.78 186.94M
TPW TEMPLE & WEBSTER GROUP LTD 3.7 80.47k 411.43 437.81M
CDD CARDNO LTD 0.38 1.61M 383.97 167.63M
BID BIDENERGY LTD 1.18 816.22k 360.43 155.53M
HZN HORIZON OIL LTD 0.08 1.32M 349.65 104.16M
DCC DIGITALX LTD 0.03 95.34k 345 16.96M
ELX ELLEX MEDICAL LASERS LTD 0.72 4.24k 308.18 106.26M
BFG BELL FINANCIAL GROUP LTD 1.41 20.81k 307.02 471.49M
PAN PANORAMIC RESOURCES LTD 0.22 1.09M 261.05 167.89M
ZNO ZOONO GROUP LTD 1.71 18.81k 239.99 273.55M
CCV CASH CONVERTERS INTL LTD 0.19 13.57k 237.62 123.29M
AOF AUSTRALIAN UNITY OFFICE FUND 2.99 1.25M 205.9 490.12M

Whatever goes up must come down right? Zoono (ASX:ZNO) and Holista CollTech (ASX:HCT)two stocks involved in bug killing that have seen substantial returns since the coronavirus broke out, both cropped up on the list this week.

Both stocks are keen to play a part but have been struggling to keep up with demand for their products

Another new target of shorters is regional airline Regional Express (ASX:REX), which is seeing increased competition from Qantas.

While it has not commented publicly on the coronavirus, many other airlines have been impacted by the outbreak and the fears of it.

Others stocks have become targets following the release of half-yearly results, including antiques seller Temple & Webster (ASX:TPW), Baby Bunting (ASX:BBN) and Bell Financial (ASX:BFG).