Short & Caught: The ASX stocks investors are shorting right now
Link copied to
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.
Next most shorted is Mayne Pharma (ASX:MYX). The company’s share price has nearly halved since its half yearly, which it admitted was disappointing with a $17.5m after-tax loss.
Last time Stockhead ran this column we reported shorters had increased their interest in oil stocks due to the oil price crash. Many targets remained on the list this fortnight including Otto Energy (ASX:OEL) and Senex Energy (ASX:SXY).
There are more stocks with less than $5m in short interest against them on the list this week, including travel companies such as Helloworld Travel (ASX:HLO), Apollo Tourism & Leisure (ASX:ATL) and Virgin Australia (ASX:VAH).
We also noticed companies in the middle of major deals such as Cardinal Resources (ASX:CDV), which got takeover offer last week, and Ellex Medical Lasers (ASX:ELX), which received a takeover offer for most (but not all) of its assets from European optometry play Lumibird.
Also, deal rainmakers Moelis (ASX:MOE) and Euroz (ASX:EZL) were shorted too.
While the mandatory shutdown of businesses in the hospitality space was only just announced, companies like Gage Roads Brewing (ASX:GRB) and Redcape Hotel Group (ASX:RDC) have been on short sellers’ lists for the past month.