I should have also mentioned the amount of shorters in SZL. According to the
Shortman website, as at Monday 25 July 2022, there were only 954,681 shares shorted (or 0.48% of around 200.84m SOI). Since last Monday, we only have non-aggregated shorts up until last Thursday roughly as follows (see
ASX and
adgss):
- Tues 26th: 0.08% or 161,000 shares
- Wed 27th: 0.81% or 1,627,000 shares
- Thu 28th: 0.62% or 1,245,000 shares
- Fri 29th: ???
So you can see the increased short activity as the SZL price was rising last week. We don't have the shorts from last Friday yet and we don't know the aggregated position yet either. Assuming 1% got shorted last Friday and assuming no close outs from the above figures, you've got potentially around 3% or 6m SZL shares shorted. My guesstimate is that shorts currently sit somewhere between 3-6m shares. This makes it for an interesting trading session tomorrow. Can't wait! The shorts certainly wouldn't have counted on the US markets again surging higher on Friday (with AFRM up nearly 4%), so some of them may be starting to squirm as tomorrow approaches. If the open tomorrow starts to go against them, then we could be in for some fireworks again lol. Remember, the maximum us longs can lose is our capital outlay but the maximum loss for shorts is unlimited. Also throw in an astute SZL management team, and the threat of a left field announcement as a follow up to last week will absolutely roast the shorts you would think. All in all, I would rather be long than short SZL this week and am invested accordingly. This doesn't mean I will be right, it just means that on my analysis there is a greater chance that shorts will be roasted this week than not. This is not fin advice so DYOR and make your own decisions and minds up.
