The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 41
Short sellers are doubling down on lithium stocks, despite recent China stimulus announcements.
Source: iStock
Mentioned
KEY POINTS
- Short sellers are doubling down on lithium stocks despite recent China stimulus
- Webjet Group saw short interest spike to 3.7% upon its demerger, while Domino's Pizza experienced a doubling of short interest over two months despite a 25% share price rally
- Sigma Healthcare saw a dramatic 42% rally after proposing concessions related to its Chemist Warehouse merger, forcing shorters to cover into strength
Welcome back to the Short Seller Series – A recap of the most heavily shorted stocks on the ASX and those experiencing significant changes to 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 tables below will compare:
Week-on-week changes between 1 and 8 October 2024
Month-on-month changes between 3 September and 8 October 2024
Most Shorted
Ticker | Company | Short % | Week-on-Week | Month-on-Month |
|---|---|---|---|---|
Pilbara Minerals | 19.05% | -0.31% | -1.31% | |
Idp Education | 14.18% | -0.08% | 0.05% | |
Paladin Energy | 14.05% | 0.08% | 3.22% | |
Boss Energy | 13.49% | 0.61% | 3.68% | |
Syrah Resources | 12.80% | 0.48% | 0.33% | |
Mineral Resources | 12.68% | -0.50% | 2.71% | |
Liontown Resources | 10.54% | 0.43% | -0.61% | |
Deep Yellow | 9.88% | 0.09% | 1.26% | |
Lynas Rare Earths | 9.82% | -0.36% | -1.23% | |
Cettire | 9.02% | 0.14% | -1.22% |
Key takeaways:
Pilbara Minerals and IDP Education remain the two most shorted stocks on the market. The two stocks have retained the top spots since early February
The dust has settled for the China stimulus rally and its clear that shorters are doubling down in anticipation of further downside for lithium stocks
Pilbara Minerals is up only 3.2% since 23 September, down from peak gains of 22%. MinRes on the other hand has managed to maintain most of its gains, up 38% over the same period.
Rising Shorts
Ticker | Company | Short % | Week-on-Week | Month-on-Month |
|---|---|---|---|---|
Webjet Group | 1.18% | NA | NA | |
Domino's Pizza | 6.98% | 1.83% | 1.64% | |
Clinuvel Pharmaceuticals | 5.84% | 1.54% | -0.09% | |
Lifestyle Communities | 7.76% | 1.25% | 1.68% | |
Ampol | 4.52% | 1.12% | 1.88% | |
The Star | 5.78% | 0.67% | 0.86% | |
Boss Energy | 13.49% | 0.61% | 3.68% | |
Syrah Resources | 12.80% | 0.48% | 0.33% | |
Liontown Resources | 10.54% | 0.43% | -0.61% | |
Johns Lyng | 4.45% | 0.42% | 1.30% |
Key takeaways:
Webjet recently completed a demerger, splitting its operations into two separate ASX-listed entities – Web Travel Group, which focuses on the wholesale bookings business, and Webjet Group, which is comprises the B2C businesses: Webjet OTA, GoSee and Trip Ninja. Short interest in Webjet Group spiked to 3.7% on its ASX debut on 23 September and have since eased to 1.18%.
Domino's has experienced a doubling of short interest over the past two months, reaching its highest level since December 2022. Interestingly, the stock is up around 25% since early September, suggesting that short sellers are facing losses. The short thesis seems quite straight forward, with Macquarie noting that "the issues in France and Japan remain a key headwind for Domino's over the near term, with the turnaround of these markets likely to take a couple of years. Network growth will likely remain muted over the medium term as management focuses on store profitability."
Most Covered
Ticker | Company | Short % | Week-on-Week | Month-on-Month |
|---|---|---|---|---|
Sigma Healthcare | 2.23% | -2.32% | -3.07% | |
Dexus Industria REIT | 0.02% | -1.12% | -0.92% | |
Inghams Group | 2.80% | -0.75% | -0.93% | |
Bravura Solutions | 0.18% | -0.74% | -0.74% | |
Fineos Corp | 0.17% | -0.67% | -0.68% | |
Mesoblast | 3.34% | -0.58% | -0.68% | |
Mineral Resources | 12.68% | -0.50% | 2.71% | |
QORIA | 0.22% | -0.50% | -0.42% | |
Australian Clinical Labs | 0.42% | -0.47% | -0.45% | |
Unibail-Rodamco-Westfield | 0.55% | -0.45% | -0.20% | |
Core Lithium | 1.91% | -0.43% | -2.95% | |
Arcadium Lithium | 2.05% | -0.43% | -0.68% | |
IPH | 0.96% | -0.42% | -0.56% |
Key takeaways:
Sigma Healthcare saw a dramatic 42% rally between September 27 and October 3, largely driven by developments related to its merger with Chemist Warehouse and positive feedback from the ACCC. The company proposed major concessions allowing franchisees to opt out of agreements without penalties for three years, prompting many short sellers to cover their positions.
Inghams was one of the worst performers during the August reporting season, suffering a 20% selloff in a single day after reporting weaker-than-expected FY24 results. Concerns over a phased reduction in poultry volumes from a new supply contract with Woolworths have contributed to this decline. As the stock continues to weaken, it appears that short sellers are losing interest and covering their positions.
