Weekly Reports | Mar 07 2024
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Summary:
By Greg Peel
Week Ending February 29, 2024.
Last week the ASX200 completely stalled during what was the last, but still busy, week of result season. This week saw the index take off again to a new high.
This from last week’s Report:
“Of note over recent days has been a solid bounce in lithium prices in China, suggesting restocking following the New Year break. A solid bounce, that is, off the depths to which prices had plunged in prior months.
“The share prices of lithium miners have been on a rapid move back up as well, from the depths to which they had plunged, and still, at least till last week, remain among the most shorted stocks on the ASX.
“We’ll see whether the shorters can maintain their resolve next week.”
Here we are, and shorts in Core Lithium ((CXO)) have fallen to 8.8% from 11.6%, while Sayona Mining ((SYA)) saw a fall to 7.4% from 9.5%, and Chalice Mining ((CHN)), which produces cobalt, dropped to 6.8% from 9.8%.
That would help explain oversized share price rallies. Not moving, however, was the most shorted stock - Pilbara Minerals ((PLS)). Its shorts rose to 21.4% from 21.2%.
I continue to suspect the extent of the short position in Pilbara suggests a possible long-short play against other miners, rather than a purely naked short.
Another story from result season is that of Australian Clinical Labs ((ACL)). See below.
Weekly short positions as a percentage of market cap:
10%+
PLS 21.4
SYR 16.8
IEL 10.3
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