Short selling: Which ASX stocks are investors covering and shorting — Week 28

Welcome back to the Short Seller Series, where we recap the most shorted stocks on the ASX as well as those experiencing notable rises, or falls, in short interest over the past week.

Short selling data is four days behind today's date because reporting is not mandatory until three business days after the trade. The data below refers to short interest changes for stocks between 5 July and 28 June.

Most shorted stocks

What’s changed

• Very incremental week with only a few names changing places

• No new stocks moved in or out of the top 10

Where are shorters going?

Interesting takeaways:

• Thematically, shorts are rising in various beaten up names, some of which are beginning to bounce off recent lows – Notably Elders and Downer

• 29Metals is a name that’s at risk of a capital raising as it seeks to repair its Capricorn Copper asset after unprecedented floods earlier this year. A trading update on 5 July cited a cash balance of $127 million which includes the drawdown of a US$40 million revolving capital facility. This compares to $163 million cash and an undrawn US$40 million facility at 31 March.    

Where are shorts covering?

Interesting takeaways

• Several M&A-related names are experiencing a pullback in short interest. This includes both companies that are the recipient of takeover offers and those acquiring new companies

  • Genesis Minerals – Acquires St Barbara’s Leonora assets

  • Mincor –  To be acquired by Wyloo Metals

  • Pantoro – Set to merge with Tulla Resources

  • PointsBet – Recommends US$225 million takeover offer from Fanatics Betting and Gaming for US business 

  • St Barbara – Sold Leonora assets to Genesis Minerals 

  • Liontown Resources – Rejected $2.50 per share bid from Albemarle