Short selling: Which ASX stocks are investors covering and shorting — Week 30

Welcome back to the Short Seller Series, where we recap the most shorted stocks on the ASX as well as those experiencing a notable rise and fall 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 12 and 19 July.

Most shorted stocks

What’s changed

• Flight Centre, Core Lithium and Idp Education remain the top three most shorted stocks

• Syrah Resources jumps to #4 from #10 a week ago

Where are shorters going?

Interesting takeaways:

• Notable rise for three battery metal laggards

  • Syrah Resources (-64% YTD): Paused graphite production in May and June constrained by “maximum inventory positions and lower natural graphite sales.” Macquarie flagged that the company’s Vidalia Anode plant faces a potential US$100 million funding shortfall that might require a capital raise in early 2024

  • Jervois Global (-78% YTD): Suspended final construction of its Idaho Cobalt Project in March due to “continuing lower cobalt prices” and recently raised US$50 million  

  • Lake Resources (-70% YTD): Announced the two phase development of its flagship Kachi Project in mid-June which triggered a 35% selloff across two days

Where are shorts covering?

Interesting takeaways

• Tech (Megaport, EML Payments, Seek) continues to see a wind down in short interest ahead of mega cap US tech earnings

• Coal names like Whitehaven Coal and New Hope experience a timely pullback in short interest – Both are up 12-15% since 12 July

• Battery metal heavyweights Iluka, IGO, Allkem and Lynas shorts also eased – But given their recent share price weakness, suggests its more profit taking from the shorters perspective