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The Short Report
BY RUDI FILAPEK-VANDYCK - 14/06/2018 | VIEW MORE ARTICLES FROM FNARENA NEWS

Guide:

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.

Summary:

Week ending June 7, 2018

Last week saw the ASX200 in rally mode, led by resources, as a risk-on mood seemed to permeate. The market then stalled for the long weekend and of yesterday, it was back to risk-off again.

Again we saw, last week, not a lot of movement in short positions. There’s a bit of red towards the low end of the table but nothing substantial, with one exception.

MYOB ((MYO)) saw its share price plunge -8% last Thursday. Short positions jumped to 7.1% from 5.7%. See below.

We note, for the sake of interest, that at the very bottom of last week’s table is Gateway Lifestyle Group ((GTY)) on 5.0% shorted. Yesterday’s takeover offer for the company sparked a 15% share price jump.

 Weekly short positions as a percentage of market cap:

10%+

SYR    19.8
DMP   16.3
JBH     15.6
GXY   14.1
MYR   13.5
NAN   12.4
AAC   11.9
ORE    11.9
VOC   11.8
GXL    11.4
IGO     11.2
NWS   11.0
IVC     10.9

No changes                                                    

9.0-9.9

HT1, GEM

Out: MYX
                                                                                               
8.0-8.9%

HVN, MYX, MTS, BIN, AAD, PLS, IPH, GMA

In: MYX, GMA                      Out: MLX

7.0-7.9%

RFG, FLT, TPM, IFL, BGA, WEB, BKL, QUB, MLX, SFR, BWX, ING, MYO

In: MLX, BWX, ING, MYO             Out: GMA, APO

6.0-6.9%

RSG, MOC, CSR, SEK, TGR, KAR, PRY, BAP, BEN, ALX*

In: BEN, ALX                        Out: ING, BWX

5.0-5.9%

NSR, AHG, NUF, SUL, CCP, NXT, APT, IMF, JHC, BOQ, GTY

In: APT           Out: MYO, ALX, BEN                     

* Note:Atlas Arteria ((ALX)) is the new name for Macquarie Atlas Roads (MQA).

                       
Movers & Shakers

Last week MYOB ((MYO)) announced it was pulling out of its bid to acquire the accountant group assets of rival Reckon ((RKN)). Analysts assumed ACCC requirements for approval rendered the acquisition unviable. Instead, MYOB will invest the money it had put aside in organic growth.

Analysts believe it seems sensible not to proceed, but have downgraded earnings forecasts as a result of the lost opportunity. Two downgrades to Hold or equivalent ratings reflect a view it’s a hard road now ahead, organically, for MYOB.

Morgan Stanley went one step further when it took the opportunity to initiate coverage of the stock with an Underweight rating. In the new world of disruption, where software-as-a-service (SaaS) is king, the broker believes it will be the fast movers eating the slow movers rather than the big eating the small.

To that end, Morgan Stanley suggests Xero ((XRO)) is set to be the winner in the space, despite MYOB’s entrenched longevity.

One might argue that once upon a time, MYOB appeared to “disrupt” the cosy world of accountants and bookkeepers.

MYOB’s share price fell -8% on the news and short positions rose to 7.1% from 5.7%.

ASX20 Short Positions (%)

* Replaces AMP

To see the full Short Report, please go to this link



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The content of this information does in no way reflect the opinions of FN Arena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FN Arena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FN Arena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

 

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