15 stocks with big changes in short interest: Renewables, uranium and healthcare
A new series exploring stocks that experienced a jump in short interest last month.
Source: iStock
Mentioned
KEY POINTS
- 15 ASX-listed companies that have experienced a big jump in short interest in the past month
- Notable stocks coming from renewables, uranium and healthcare sectors
- Several names experienced a jump in short interest pre/post capital raise
Active investors can gain invaluable insights from short selling data. By taking a short position, traders are betting against the stock because they have identified a major risk that could send the share price much lower.
Short interest reflects the number of shares that have been sold short divided by the total number of shares outstanding. A short interest of more than 10% is generally viewed as high.
Short interest is often used as a gauge for market sentiment towards the stock. A high level of short interest would indicate institutions are betting against the stock, which is generally a bearish signal.
Stocks that have experienced a big jump in short interest (from <1.0%) in November
Ticker | Company | Short interest |
|---|---|---|
CALIX | 4.39% | |
Sandfire Resources | 4.01% | |
Electro Optic Systems Holdings | 3.64% | |
Mincor Resources NL | 3.28% | |
Integral Diagnostics | 3.23% | |
Adbri | 3.18% | |
G8 Education | 3.11% | |
Laramide Resources | 3.11% | |
AGL Energy | 2.96% | |
Peninsula Energy | 2.89% | |
Boss Energy | 2.87% | |
Incannex Healthcare | 2.75% | |
Mayne Pharma Group | 2.75% | |
Invocare | 2.69% | |
Blackmores | 2.68% |
Data: 3 - 28 November 2022
Interesting observations
Sector trends: Renewables, uranium and healthcare
The rise in short interest is quite apparent for stocks across three sectors:
Renewables: Calix (decarbonisation technologies), Sandfire (copper) and Mincor (nickel)
Uranium: Laramide Resources, Peninsula Energy and Boss Energy
Healthcare: Integral Diagnostics, Incannex Healthcare, Mayne Pharma, Invocare and Blackmores
Healthcare was on a massive winning streak
The S&P/ASX 200 Healthcare Index was on a nine-day winning streak, up 3.8% between 16 to 29 November. Its rally from mid-late October lows was even greater, up more than 10%.
XHJ chart (Source: TradingView)
Uranium price ease
Uranium spot prices fell below the symbolic US$50/lb level last Friday, close to a two month low.
Uranium spot price (Source: TradingEconomics)
Corporate actions
Several of the rising short candidates raised capital in the past month, including:
4 Dec: Incannex Healthcare raised $13m at a 10.9% discount
27 Nov: Peninsula Energy raised $32m at a 15.5% discount
21 Nov: Sandfire Resources raised $94.0m at a 10.2% discount
Mayne Pharma also experienced a rise in short interest in the lead up to its special dividend and capital return (combined payout of 6.52 cents or a yield of 23.7%). Long story short, Mayne Pharma sold one of its businesses for US$475m, with proceeds going towards debt repayment and a return to shareholders.
