The Short Report
The Short Report draws upon data provided by the Australian Securities & Investment Commission (ASIC) to highlight significant weekly moves in short positions registered on stocks listed on the Australian Securities Exchange (ASX). Short positions in exchange-traded funds (ETF) and non-ordinary shares are not included. Short positions below 5% are not included in the table below but may be noted in the accompanying text if deemed significant.
Please take note of the Important Information provided at the end of this report. Percentage amounts in this report refer to percentage of ordinary shares on issue.
Stock codes highlighted in green have seen their short positions reduce in the week by an amount sufficient to move them into a lower percentage bracket. Stocks highlighted in red have seen their short positions increase in the week by an amount sufficient to move them into a higher percentage bracket. Moves in excess of one percentage point or more are discussed in the Movers & Shakers report below.
Week ending May 31, 2018
Last week saw the ASX200 bottom out under 6000 before beginning a choppy recovery this week.
While the prior week saw quite a lot of movement on the short table, last week saw very little at all. Only one stock saw a move of one percentage point or more, being APN Outdoor ((APO)), which fell to 7.1% from 9.7%. See below.
Beyond that, special mention goes to Metcash ((MTS)), which saw shorts rise to 8.7% from 7.9% after issuing a profit warning.
We’ll also note BWX ltd ((BWX)) has dropped to 6.6% from 7.3% in the wake of its takeover offer.
AMP ((AMP)) Watch: 3.7% last week from 3.5%.
Weekly short positions as a percentage of market cap:
In: IGO Out: HT1
GEM, HT1, MYX
In: HT1 Out: IGO, APO
MTS, BIN, AAD, HVN, MLX, IPH, PLS
In: MTS Out: RFG, GMA
GMA, FLT, TPM, WEB, BGA, IFL, BKL, QUB, SFR, RFG, APO
In: APO, GMA, RFG Out: MTS, BWX
RSG, ING, TGR, CSR, BWX, SEK, KAR, MOC, BAP, PRY
ALX*, SUL, NSR, AHG, MYO, BEN, CCP, NUF, IMF, JHC, NXT, BOQ, GTY
Movers & Shakers
Last week APN Outdoor upgraded its FY18 earnings guidance in a rare “confession session” anti-warning. The share price quickly shot up 13% and given short positions fell to 7.1% from 9.7%, short-covering was clearly involved.
The upgrade suggested that the damage done to APN’s earnings prospects after having lost the Yarra Trams contract has now been overcome with new business.
APN Outdoor is currently in a bidding war for HT&E’s ((HT1)) outdoor advertising business, Adshel, along with rival oOh!media ((OML)). APN has gazumped oOh!media's $470m bid with $500m, but not all cash. Brokers suggest HT&E would prefer a cash bid, which would likely require APN to raise capital.
And no doubt HT&E is waiting to see if oOh!media comes back again.
The irony is that up until 2013, what are now known as HT&E and APN Outdoor were both part of the same company, APN News & Media.
We note shorts in HT&E fell to 9.4% last week from 10.0%.
oOh!media did spend some time on the 5% plus shorted table but has not been spotted for many weeks.
ASX20 Short Positions (%)
* Replaces WFD for the moment
To see the full Short Report, please go to this link
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