Going Short on Woolworths? You Might Need to Rethink

Woolworths

In the September quarter, Woolworths Group Limited (ASX: WOW) represent the profitable short, however, moving forward the situation might change and the short sellers on the stock might need to reevaluate their positions. The trend from the past few months show that the short positions on Woolworths have been declining. As of September 28, 2018, the short positions on the stock stood at 2.98%, in August 2018 it was 3.19% while in June 2018 and March 2018 it was 3.38% and 4.76%, respectively.

The share price of Woolworths has witnessed a fall of over 12% from the July 12 to September 20. However, other companies like Westpac Banking (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto (ASX: RIO) and Flight Centre (ASX: FLT) also reflected profitable shorts for the quarter ended September 2018. According to ASIC (Australian Securities and Investments Commission), the market participants have positive for the banking stocks. However, still, the risks are looming over the banks. 

According to the Macquarie Wealth Management, the interim report which was released recently by the Royal Commission is expected to have a limited positive impact on the outlook for the banking stocks. The report declared that greed was the primary factor which led banks to follow unethical practices. The banking sector is at the discount primarily because of the concerns which the banks have been dealing with lately like compliance costs and higher regulatory pressures. According to Macquarie, the banking stocks represent the buying opportunities primarily because they are being traded at discount. It has also given following recommendations:

  • On CBA: Neutral, while the target prices stood at $76.50.
  • On Westpac: Neutral rating
  • On Australia and New Zealand Banking Group Limited (ASX: ANZ) and National Australia Bank Limited (ASX: NAB): Outperform rating.

Citigroup has improved its rating on Woolworths and awarded the stock a “Buy.” It believes that the decline in the stock price should be treated as the buying opportunity. Citigroup gave a target price of $32 on Woolworths.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

Sponsored ad by Kalkine

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here