8 ASX Shorted Stocks: CUV, JBH, NEA, GXY, MYR, PLS, WEB, SUL

8 ASX Shorted Stocks: CUV, JBH, NEA, GXY, MYR, PLS, WEB, SUL

Summary

  • Short-selling strategy allows market players to earn money when there is an anticipation of share price to fall down.
  • CUV has taken steps towards commercialisation of its first product SCENESSE®, in the US and Europe regions.
  • In the past few months, most of the businesses have been affected by COVID-19, however, online platforms of entities like JBH and MYR performed strongly during the crisis period.

At regular intervals, the ASIC (Australian Securities & Investments Commission) provides  a report consisting of the list of companies trading on Australian Securities Exchange that are targeted by short sellers in the market. There might be an alert sign created amongst the investors in case of rise in short interest. Short selling is based on the idea of borrowing a security for some time and later selling it in the market, only to repurchase it again for lesser amount of money.

In the below article, we will be looking at 8 shorted stocks on ASX:

CLINUVEL Pharmaceuticals Limited

CLINUVEL Pharmaceuticals Limited (ASX:CUV) is focused on the development of SCENESSE®, which is the proprietary drug of the Company.

In a recent presentation, the Company stated CUV is a gainful, cash flow positive pharma entity having a clarity in its objective to progress ahead and offer new products.  

The Company in April reached an exclusive collaboration agreement with Winhealth Pharma, wherein, both the companies would distribute SCENESSE®. As per the agreement, both entities would also accredit and train local hospitals for providing long-term care to EPP patients of China.

As per the report released by AISC on 3rd June 2020, the stock of CUV has been shorted 9.22% of total shares in issue.

Do Read: How these healthcare stocks are trending amongst investors?

At the close of trading session on 10th June 2020, the stock of CUV settled at $23.65 per share with a decline of 1.211% as compared to its previous closing price. CUV has delivered a return of 4.86% during the period of one month to shareholders.

JB Hi-Fi Limited

JB Hi-Fi Limited (ASX: JBH) is engaged into retailing of home consumer products with major focus on consumer electronics, software, whitegoods, and appliances.

Recently, the Company updated the market with operational and financial performance for Q3 FY20 and outlined the following:

  • In response to COVID-19, the Company is committed to support government and community efforts to limit the spread of pandemic.
  • JBH witnessed an acceleration in sales during March 2020, as customers prepared for a potential increase in government restrictions back then.
  • The Group experienced sales growth in Australia during April, and early May since JB HI-FI Australia along with The Good Guys retail stores, with online and commercial businesses continued to be open, offering consumers with the goods required by them during COVID-19.

As per the report release by AISC on 3rd June 2020, the stock of JBH has been shorted 9.35% of total shares in issue.

At the close of trading session on 10th June 2020, the stock of JBH settled at $40.000 per share with a rise of 4.193% as compared to its previous closing price. JBH has delivered a return of 11.60% during the period of one month to shareholders.

Nearmap Ltd

Australia based entity, Nearmap Ltd (ASX:NEA) provides geospatial map technology for businesses and government clients.  

The Company recently announced that its ACV (Annualised Contract Value) has surpassed the $102 million mark and on the back of current trading conditions, the Company anticipates ACV portfolio in the range of $103 million-$107 million.

As per the report release by AISC on 3rd June 2020, the stock of NEA has been shorted 9.05% of total shares in issue.

Do Read: A look at In-demand stocks.

At the close of trading session on 10th June 2020, the stock of NEA settled at $2.32 per share with an increase of 4.505% as compared to its previous closing price. The stock of NEA has delivered a return of 30.21% during the period of one month to shareholders.

Galaxy Resources Limited

Galaxy Resources Limited (ASX: GXY) is involved in the production of lithium concentrate and in exploration of minerals.

For the quarter ended 31st March 2020, GXY’s lithium concentrates production volume (Mt Cattlin) stood at 14,306 dry metric tonnes, which was within the production guidance. During the quarter, a shipment of 32,512 dmt helped the Company generate positive free cashflow.

As per the report release by AISC on 3rd June 2020, the stock of GXY has been shorted 10.22% of total shares in issue.

At the close of trading session on 10th June 2020, the stock of GXY closed flat at $1.085 per share. GXY has delivered a return of 33.13% during the period of one month to shareholders.

Myer Holdings Limited

Myer Holdings Limited (ASX:MYR) operates a portfolio of 66 departmental stores throughout Australia. As per the release dated 22nd May 2020, the Company announced that it reopened 24 stores on a staged and trial basis over the recent weeks considering the government measures and conditions in different states and territories. However, its online business performed strongly during the unprecedented period caused by COVID-19.

As per the report release by AISC on 3rd June 2020, the stock of MYR has been shorted 13.44% of total shares in issue.

At the close of trading session on 10th June 2020, the stock of MYR was at $0.275, unchanged from the previous close. MYR delivered a return of 12.70% during the period of one month to shareholders.

Pilbara Minerals Limited

Pilbara Minerals Limited (ASX:PLS) is in the exploration of lithium and tantalum.

The Company in the March quarter activities report stated that its moderated production strategy, enhanced recoveries, and lower costs helped the Group to maintain robust cash position. This also placed the Company in a decent position for market recovery. During the March quarter period, the Company recorded production of 20,251 DMT of spodumene concentrate.

As per the report release by AISC on 3rd June 2020, the stock of PLS has been shorted 8.64% of total shares in issue.

At the close of trading session on 10th June 2020, the stock of PLS settled at $0.360 per share, with a fall of 2.703% as compared to its previous closing price. PLS delivered a return of 68.18% during the period of one month to shareholders.

Webjet Limited

Webjet Limited (ASX:WEB) provides online travel bookings services for flights, hotels, car hire, cruises and tours. WEB  completed its Retail Entitlement Offer in April, which reflects second stage of WEB’s equity raising of $346 million through institutional placement and pro-rata accelerated non-renounceable entitlement offer.

As per the report release by AISC on 3rd June 2020, the stock of WEB has been shorted 9.67% of total shares in issue.

At the close of trading session on 10th June 2020, the stock of WEB settled at $4.65 per share with a decline of 2.311% as compared to its previous closing price. WEB delivered a return of 36.00% during the period of one month to shareholders.

Super Retail Group Limited

Super Retail Group Limited (ASX:SUL) operates specialty retail stores in the automotive, tools, leisure and sports categories.

On 18 May 2020, SUL notified the market on change of interests of its substantial holder Mitsubishi UFJ Financial Group, Inc. effective 13 May 2020.  It has decreased its voting power from 7.59% to 6.04% in SUL.

The Company in March this year, announced that it was cancelling FY20 interim dividend of 21.5 cents per share, considering the uncertainty with respect to the duration of the COVID-19 pandemic and its potential impact on trading.

As per the report release by AISC on 3rd June 2020, the stock of SUL has been shorted 10.60% of total shares in issue.

At the close of trading session on 10th June 2020, the stock of SUL settled at $8.700 per share, with a rise of 1.754% as compared to its previous closing price. SUL delivered a return of 23.55% during the period of one month to shareholders.

 


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