LYC 2.86% $6.11 lynas rare earths limited

10 most shorted stocks on asx, page-9

  1. 6,296 Posts.
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    people are over analysing the 'shorting collusion' thats supposedly going on... lets look at the similarities between the most shorted stocks and why people may justifiable think they are overvalued and worth a short play:

    JB HI-FI, MYER, DAVID JONES, HARVEY NORMAN: all major retailers... who wants to buy into retail right now when even gerald harvey admits the industry is in the dumps due to the online revolution...? i havent even been to a shopping center in months, i go to work monday-friday, order online and pick up my items in my mail box or at the post office. it costs me half as much and i get to spend my weekend at the beach... retailers are nothing more than glorified fitting rooms these days...

    FAIRFAX: whole industry is going through systemic change, if i was an advisor (and im not) id be telling my clients not to invest in print media ever again... pick up some small app/gaming companies instead.

    ILUKA: similar to lynas, prices for its products fell last year... its full fy profit is down 33% on the previous year... about to slash jobs...

    PALADIN: hasnt produced a profit since 2004, uranium prices slumped 34% since japan disaster... whole sector is looking bearish, no one wants uranium. SP rose from 80c to around $1.20 on the back of not much = prime shorting target...

    METCASH: PE of about 14, literally hasnt gone anywhere in about 7 years, operates in a tough sector, recent volatility including a price rise of about 30% this year... i could see why people may think this stock is over valued...

    FLIGHT CENTRE: pretty strong business, can only put the high shorting position down to the SP technically diverging from its long term trend and speculators looking for a mean reversion in price.

    LYNAS: has had the value of its product smashed over the past year. its sliding share price almost completely mirrors the sliding value of its basket price, coupled with geo-political tensions surrounding the project... has been shorted to hell but looks to be stabilizing along with REE prices...
 
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