Short & Caught: The ASX stocks 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.
Stockhead’s two preferred metrics are raw short interest as well as percentage changes in them within the last month.
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.
Yesterday Bellevue announced a 23 per cent boost to its gold resources, which now sit at 2.2 million ounces.
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
While it has not commented publicly on the coronavirus, many other airlines have been impacted by the outbreak and the fears of it.