Short Selling: Shorters continue to pile into lithium companies, uranium shorts rise

Welcome back to the Short Seller Series – A recap of the most heavily shorted stocks on the ASX as well as those that have experienced significant shorting interest over the past month.

Short selling data is four days behind today's date because reporting is not mandatory until three business days after the trade. The tables below compare short interest changes between 6 December 2023 and 9 January 2024.

The Most Shorted Stocks

Shorters continue to target both lithium producers and developers – A theme that is consistent with the current downward spiral in lithium prices.

A few uranium names like Deep Yellow and Peninsula Energy are also debuting in the top ten list (which is a little strange given the recent surge in uranium equities).

Stocks with Rising Short Interest

It's interesting to see short interest rise in Peninsula Energy, a $175 million market cap uranium developer which is seeking to restart production at its Lance Project in the US. A $50 million placement was completed in late November at 7.5 cents per share or a 38% discount to pre-raise prices. The stock has almost doubled off its 21 November 2023 low of 7.6 cents.

Where Are Shorters Covering

Short covering data tends to reflect one of two narratives:

1. Stocks that have been sold to oblivion (e.g. Mesoblast, Appen, Arafura Rare Earths)

2. Stocks that have bottomed or rallied hard in recent weeks (e.g. Elevate Uranium, Iress and Lendlease).