Flight Centre’s reign as the most shorted stock on the ASX has come to an end, with Core Lithium taking the top spot. Flight Centre, known for its travel services, dropped to equal second place with IDP Education. The shift in rankings is a result of Flight Centre experiencing a boost in its shares following a full-year profit upgrade in July. The company expects to report underlying EBITDA between $295 million and $305 million for FY23. This positive news has contributed to a 15% increase in its shares over the past month and a 54% increase year-to-date.
On the other hand, Core Lithium has seen a decline in its short position, indicating increased confidence among investors. The company has set guidance for the sale of spodumene (a lithium mineral) for FY24, and its production forecasts are optimistic. Core Lithium expects sales of 90,000 to 100,000 tonnes at a cost of $1165 to $1250 per tonne. The company’s positive outlook is a significant factor in its reduced short selling activity.
Megaport, a tech stock, has also experienced a significant drop in its short position, falling from 8% to 2%. This news has been met with delight by the company’s founder and chairman, Bevan Slattery. Slattery attributes the decline in short selling to improvements in Megaport’s leadership and fiscal discipline. The company has seen a $40 million annual cash turnaround and a renewed focus on being a customer-centric business. These positive changes have resulted in a reinvigorated sense of direction within the company.
Syrah Resources, a graphite producer, remains one of the most shorted stocks on the ASX, with a short position of 9%. The company has faced challenges due to subdued demand and declining prices for graphite, leading to a reduction in production. Despite this, Syrah Resources remains a target for short sellers.
Overall, these changes in short positions showcase the dynamic nature of the stock market. Flight Centre’s drop from the top spot, Core Lithium’s positive forecasts, Megaport’s improved performance, and Syrah Resources’ ongoing challenges all demonstrate the constant fluctuations within the market. Investors and traders must stay informed about short selling activities, as they can significantly impact stock prices. The Australian market, with its restrictions on shorting, is particularly susceptible to these fluctuations.
