The Short Report – 06 Feb 2020, page-21

There was a significant drop in shorts last friday -https://www.shortman.com.au/stock?q=NEA

I find a few issues with this shorting of NEA as one of the most heavily shorted stocks in the ASX 200.

Firstly this shorting only works if there are significant numbers of sellers prepared to dump stock. So who is prepared to sell out cheap of a stock with a good track record and with virtually all the brokers marking it as a buy? I wonder if some of them are employee shares sold to pay for other needs (eg a Mortgage deposit). A lot of them may be smart with computers etc but not financial whizzes.

Secondly the shorting accelerated just before the unexpected trading update. How did they know? Inside trading?

Are there other surprises us retail investors do not know about coming down the pipeline?

I am a long term holder who up to now has had a high level of confidence in the Management.