Short sellers are betting some ASX lithium stocks might be just too hot. Pic: Getty Images
Short & Caught: Turbulence still for Flight Centre, hot lithium stocks a target for short sellers
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- Flight Centre remains most shorted stock on ASX despite its share price rising more than 27% YTD
- Megaport remains the second most shorted ASX stock with its CEO resigning suddenly in May
- Several lithium stocks caught attention of short sellers including hotter-than-hot Liontown Resources
How does shorting work?
Short sellers effectively borrow a stock from a broker, and go wager it (sell it) on the open market. The plan is to then buy the same stock back later after it’s made a hefty drop in price. That done, the short seller buys it back at the lower price and returns it to the lender.
The difference between the sell price and the buy price is the short seller’s profit. Investors are in effect betting they will fall.
Because shorting is restricted under Australian law (and because it’s an all or nothing bloodsport) any substantial shorting of stocks is worth knowing about, even if you only trade long.
And perhaps there’s method in the madness.
Stockhead has utilised the number of short positions as a percentage of total shares on issue. The most ASX shorted stocks (excluding CDIs) all have 5% or more.
The most shorted stocks on ASX
Swipe or scroll to reveal full table. Click headings to sort:
| Code | Company | Short positions | Shares on issue | % short positions |
|---|---|---|---|---|
| FLT | FLIGHT CENTRE TRAVEL ORDINARY | 25,687,667 | 217,957,864 | 12% |
| MP1 | MEGAPORT LIMITED ORDINARY | 16,516,189 | 158,423,600 | 10% |
| ZIP | ZIP CO LTD ORDINARY | 77,781,728 | 768,865,865 | 10% |
| CXO | CORE LITHIUM ORDINARY | 178,590,912 | 1,855,016,794 | 10% |
| SYA | SAYONA MINING LTD ORDINARY | 813,241,350 | 8,885,458,530 | 9% |
| TPW | TEMPLE & WEBSTER LTD ORDINARY | 9,441,329 | 122,949,702 | 8% |
| PBH | POINTSBET HOLDINGS ORDINARY | 22,566,805 | 306,857,645 | 7% |
| BRG | BREVILLE GROUP LTD ORDINARY | 10,432,930 | 142,781,365 | 7% |
| AMA | AMA GROUP LIMITED ORDINARY | 77,542,353 | 1,073,070,217 | 7% |
| BRN | BRAINCHIP LTD ORDINARY | 126,422,210 | 1,767,058,145 | 7% |
| NXT | NEXTDC LIMITED ORDINARY | 32,448,387 | 457,429,783 | 7% |
| VUL | VULCAN ENERGY ORDINARY | 9,868,578 | 143,435,301 | 7% |
| JBH | JB HI-FI LIMITED ORDINARY | 7,160,434 | 109,333,981 | 7% |
| LKE | LAKE RESOURCES ORDINARY | 93,092,339 | 1,422,444,707 | 7% |
| MSB | MESOBLAST LIMITED ORDINARY | 46,636,434 | 737,121,218 | 6% |
| JRV | JERVOIS GLOBAL LTD ORDINARY | 129,743,485 | 2,079,260,963 | 6% |
| CCP | CREDIT CORP GROUP ORDINARY | 4,134,980 | 68,066,856 | 6% |
| BOQ | BANK OF QUEENSLAND. ORDINARY | 39,386,928 | 652,485,010 | 6% |
| ARB | ARB CORPORATION. ORDINARY | 4,901,976 | 81,971,722 | 6% |
| BET | BETMAKERS TECH GROUP ORDINARY | 56,047,490 | 942,874,934 | 6% |
| LTR | LIONTOWN RESOURCES ORDINARY | 128,504,981 | 2,198,454,633 | 6% |
| ABB | AUSSIE BROADBAND ORDINARY | 13,638,546 | 237,682,509 | 6% |
| IEL | IDP EDUCATION LTD ORDINARY | 15,880,411 | 278,336,211 | 6% |
| ACL | AU CLINICAL LABS ORDINARY | 11,251,668 | 201,834,015 | 6% |
| SHV | SELECT HARVESTS ORDINARY | 6,642,527 | 121,058,664 | 5% |
| AWC | ALUMINA LIMITED ORDINARY | 158,041,414 | 2,901,681,417 | 5% |
| DOW | DOWNER EDI LIMITED ORDINARY | 36,397,444 | 671,573,679 | 5% |
| WEB | WEBJET LIMITED ORDINARY | 20,728,941 | 382,536,484 | 5% |
| BOE | BOSS ENERGY LTD ORDINARY | 19,082,707 | 352,578,862 | 5% |
| OBL | OMNI BRIDGEWAY LTD ORD US PROHIBITED | 14,958,502 | 278,852,475 | 5% |
| HVN | HARVEY NORMAN ORDINARY | 60,323,273 | 1,246,006,654 | 5% |
| LLC | LENDLEASE GROUP FPO/UNITS STAPLED | 33,356,637 | 689,322,065 | 5% |
| CGC | COSTA GROUP HOLDINGS ORDINARY | 22,473,728 | 464,709,793 | 5% |
| DHG | DOMAIN HOLDINGS AUS ORDINARY | 30,317,437 | 631,657,153 | 5% |
| DYL | DEEP YELLOW LIMITED ORDINARY | 35,948,357 | 755,724,087 | 5% |
| LIC | LIFESTYLE COMMUNIT. ORDINARY | 4,926,416 | 104,545,131 | 5% |
| IMU | IMUGENE LIMITED ORDINARY | 302,491,358 | 6,423,039,111 | 5% |
| FFX | FIREFINCH LTD ORDINARY | 55,579,965 | 1,182,846,577 | 5% |
| EML | EML PAYMENTS LTD ORDINARY | 17,122,293 | 373,984,129 | 5% |
| CTD | CORP TRAVEL LIMITED ORDINARY | 6,612,273 | 146,325,746 | 5% |
| A2M | THE A2 MILK COMPANY ORDINARY | 32,572,766 | 721,976,214 | 5% |
| NCK | NICK SCALI LIMITED ORDINARY | 3,643,806 | 81,000,000 | 4% |
| DMP | DOMINO PIZZA ENTERPR ORDINARY | 3,883,210 | 89,090,402 | 4% |
| PLS | PILBARA MIN LTD ORDINARY | 129,863,454 | 2,998,013,519 | 4% |
| CUV | CLINUVEL PHARMACEUT. ORDINARY | 2,136,374 | 49,410,338 | 4% |
| 29M | 29METALS LIMITED ORDINARY | 20,829,363 | 482,052,092 | 4% |
| NVX | NOVONIX LIMITED ORDINARY | 21,017,045 | 486,882,930 | 4% |
| MTS | METCASH LIMITED ORDINARY | 40,767,473 | 965,541,602 | 4% |
| BLD | BORAL LIMITED. ORDINARY | 46,030,773 | 1,103,088,419 | 4% |
| SGP | STOCKLAND FPO/UNITS STAPLED | 97,872,001 | 2,387,171,662 | 4% |
| CHN | CHALICE MINING LTD ORDINARY | 15,428,217 | 376,447,194 | 4% |
| AVZ | AVZ MINERALS LTD ORDINARY | 141,277,715 | 3,528,729,748 | 4% |
| CIP | CENTURIA I REIT ORDINARY UNITS | 24,992,110 | 634,930,635 | 4% |
| SGM | SIMS LIMITED ORDINARY | 7,372,810 | 193,174,303 | 4% |
| MYX | MAYNE PHARMA LTD ORDINARY | 3,237,826 | 85,074,288 | 4% |
| PNI | PINNACLE INVESTMENT ORDINARY | 7,655,940 | 201,268,091 | 4% |
| CXL | CALIX LIMITED ORDINARY | 6,877,521 | 181,037,452 | 4% |
| NIC | NICKEL INDUSTRIES ORDINARY | 114,689,285 | 3,024,257,273 | 4% |
| SYR | SYRAH RESOURCES ORDINARY | 25,274,492 | 672,453,900 | 4% |
| GUD | G.U.D. HOLDINGS ORDINARY | 5,195,888 | 140,894,696 | 4% |
| SGR | THE STAR ENT GRP ORDINARY | 59,637,383 | 1,618,680,877 | 4% |
| APX | APPEN LIMITED ORDINARY | 4,576,502 | 124,319,061 | 4% |
| MFG | MAGELLAN FIN GRP LTD ORDINARY | 6,639,116 | 181,509,883 | 4% |
| IDX | INTEGRAL DIAGNOSTICS ORDINARY | 8,467,551 | 232,958,551 | 4% |
| MND | MONADELPHOUS GROUP ORDINARY | 3,390,242 | 96,341,720 | 4% |
Flight Centre remains ASX’s most shorted stock despite solid start to 2023
Short sellers still think there might be turbulence ahead for Flight Centre (ASX:FLT) which remains the ASX’s most shorted stock despite rising more than 27% year to date after a successful $240 million cap raise and news of an acquisition.
FLT undertook a $180m capital raise from institutional investors to buy Scott Dunn, a leading UK-based luxury travel brand specialising in tailor-made luxury holidays, for an enterprise value of £121 million ($211 million).
The company in March also announced it had completed a share purchase plan, which it increased from $40 to $60 million after strong support from eligible shareholders.
Furthermore, FLT’s H1 FY23 results showed profit was ahead of expectations. Highlights include:
- $95 million underlying EBITDA – 19% above mid-point of initial H1 FY23 target ($70m-$90m) & in line with recently upgraded guidance
- Almost $280 million turnaround from FY22 fiscal year, where there was a H1 loss
- Profitable in corporate, leisure and in all geographic segments, apart from Asia where it was breakeven
Megaport second most shorted stock as CEO resigns suddenly in March
Cloud connectivity provider Megaport (ASX:MP1) is the second most shorted stock on the ASX. MP1 saw its share price plunge in March after the sudden resignation of Vincent English with investors questioning whether it is undergoing a wider management change.
MP1’s founder and chairman, Queensland-based serial entrepreneur Bevan Slattery, has stepped into the CEO role until new CEO Michael Reid takes up the position on May 15.
Reid joins MP1 from Cisco, where he is the chief revenue officer for ThousandEyes, one of the company’s fastest growing SaaS businesses.
The FLT & MP1 share price today:
Hotter-than-hot lithium stocks on short sellers list
Short sellers have targeted several ASX lithium plays including Core Lithium (ASX:CXO), Sayona Mining (ASX:SYA), Lake Resources (ASX:LKE) and Liontown Resources (LTR).
After a strong 2022, lithium prices have fallen more than 50% in 2023 with sentiment damaged as prices in China retreat despite a continued expansion in EV sales.
However, as Josh Chiat reported, one of the world’s foremost experts in the key battery metal, Joe Lowry, believes this is still the lithium decade.
CXO last week announced its maiden 3,500 tonne shipment of spodumene concentrate delivered to Darwin port is ready for shipping to Yahua in China. Production of a second shipment, a 15,000-tonne parcel of concentrate, is also underway.
Described by Stockhead’s Reuben Adams as ‘hotter-than-hot’ lithium play, LTR is up more than 80% in the past month and 121% YTD. The company recently knocked back a $5 billion plus, $2.50/share cash offer from US lithium giant Albemarle.
LTR’s ~500,000tpa, $895 million Kathleen Valley lithium mine, due to open in mid-2024, is one of the few major projects headed for production in coming years.
