WSA – Should the shorts be worried? Short interest in Western...

WSA – Should the shorts be worried? Short interest in Western Areas is at 17.8%, making it one of the top shorted stocks in the Small Ords. In addition, liquidity relative to short interest in WSA is low, with an estimated 14 trading days needed to close out all of the shorts at current trading volume, which compares to 7 days for the ASX 300. While this places the shorts at risk, we think they are focusing on the implied price of US$6.85/lb Ni, which compares to spot of US$4.60/lb. At spot, our NPV falls to https://neo.ubs.com/shared/d1XICBqSFOb> Source: UBS