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 within the last month.

 

Most shorted

While the names on the list largely remained the same, there were some big movers as well as exiters from the list. After Myer’s (ASX:MYR) financial results, it is off the list.

Lithium miner Galaxy Resources (ASX:GXY) remained on top with another $9m added to its short interest. Like many of its smaller peers it has suffered from low lithium prices thanks to an oversupplied market and the electric vehicle market moving slower than anticipated.

Another low commodity price is oil, and Far (ASX:FAR) moved from under $20m last week to $45m in the last fortnight.

New entrants on the list include AI-tech stock LiveTiles (ASX:LVT) and Ardent Leisure Group (ASX:ALG), both of which have short interest above $10m.

Both of these companies have fallen over 25 per cent since late April.

Code Name Price Short Interest (Shares) Market Cap
GXY GALAXY RESOURCES LTD 1.13 58.36M 452.47M
SYR SYRAH RESOURCES LTD 0.7 51.42M 291.43M
AJM ALTURA MINING LTD 0.07 45.24M 155.81M
CLQ CLEAN TEQ HOLDINGS LTD 0.31 43.68M 246.33M
LNG LIQUEFIED NATURAL GAS LTD 0.19 31.22M 103.68M
NCZ NEW CENTURY RESOURCES LTD 0.31 31.18M 162.29M
GRR GRANGE RESOURCES LTD 0.25 29.23M 283.55M
MRM MMA OFFSHORE LTD 0.19 28.32M 171.62M
INR IONEER LTD 0.16 20.78M 221.25M
SEA SUNDANCE ENERGY AUSTRALIA LTD 0.25 20.05M 165.02M
FAR FAR LTD 0.06 19.37M 395.66M
PDN PALADIN ENERGY LTD 0.13 19.22M 245.29M
EWC ENERGY WORLD CORP LTD 0.09 19.01M 149.04M
MLX METALS X LTD 0.19 17.70M 127.48M
DCN DACIAN GOLD LTD 1.2 16.93M 290.76M
BOT BOTANIX PHARMACEUTICALS LTD 0.24 14.98M 231.48M
SDA SPEEDCAST INTERNATIONAL LTD 1.29 14.48M 300.88M
AMI AURELIA METALS LTD 0.52 13.42M 454.18M
ALG ARDENT LEISURE GROUP LTD 1.01 12.96M 479.71M
BWX BWX LTD 3.65 11.43M 458.48M
LVT LIVETILES LTD 0.4 10.53M 264.27M

 

Newly shorted

When a stock’s short interest percentage increase goes up over 110 million per cent, it has clearly gone from being not shorted to being shorted. This happened with Imugene (ASX:IMU), which now has $2.2m in short interest accrued in the last month.

There have been biotech success stories this year, such as Opthea (ASX:OPT) and Orthocell (ASX:OCC), as well as anti-cancer biotechs but none have fallen into both baskets.

The saga surrounding its casinos is hitting Donaco (ASX:DNA) with short interest, as has having to extend a credit facility for Blackham Resources (ASX:BLK).

Whatever goes up must eventually come down right? Shorters have begun to think telco Uniti Wireless (ASX:UWL) will, shorting it over 200 per cent more than last month. They have done likewise with Strike Energy (ASX:STX), which has begun to decline in recent days.

Code Name Price (I) Short Interest (Shares) 1 Month SI % Change Market Cap
IMU IMUGENE LTD 0.02 2.21M 110,575,848 79.42M
DNA DONACO INTL LTD 0.06 360.76k 18,037,850 53.53M
BLK BLACKHAM RESOURCES LTD 0.01 253.73k 174,884.14 43.96M
QMS QMS MEDIA LTD 0.85 86.92k 12,228.37 292.83M
NMT NEOMETALS LTD 0.18 311.50k 7,072.51 98.00M
NEU NEUREN PHARMACEUTICALS LTD 1.97 1.20k 4,515.38 202.21M
STX STRIKE ENERGY LTD 0.23 1.22M 4,036.55 373.48M
BOT BOTANIX PHARMACEUTICALS LTD 0.24 14.98M 1,640.13 231.48M
PNR PANTORO LTD 0.21 1.58M 922.67 252.83M
BRU BURU ENERGY LTD 0.25 506.07k 848.41 108.02M
CAJ CAPITOL HEALTH LTD 0.22 225.50k 790.02 165.22M
NET NETLINKZ LTD 0.19 1.96M 752.66 316.16M
LIT LITHIUM AUSTRALIA NL 0.05 1.36M 222.96 25.65M
CXO CORE LITHIUM LTD 0.04 888.23k 213.11 29.97M
UWL UNITI WIRELESS LTD 1.38 127.08k 203.22 273.03M