CU6 - ASX Charts, page-2143

Daily Gross Short Sales reported for 23-Apr-2025, ASX Limited (ASX) & Cboe Australia (CXA)

Analysis for CU6 (Clarity Pharmaceuticals Ltd)

Report Data:

• ASX Code: CU6
• Product/Class: Fully Paid Ordinary (FPO)
• Reported Gross Short Sales: 631,975 shares
• Issued Capital: 321,351,612 shares
• % of Issued Capital Short-Sold: 0.19% (631,975 / 321,351,612)

Implications for CU6:

1. Short-Selling Activity:
   • The 0.19% shorted on April 23, 2025, indicates moderate daily short-selling activity. Compared to CU6’s total 6% short position (noted by Slick as the 29th most shorted ASX stock), this daily figure is a small fraction (~3.17% of the 6% total, assuming 6% equals ~19.3 million shares). It suggests ongoing but not intense shorting on that date.
   • The 6% cumulative short position (likely ~19.3 million shares) reflects sustained bearish sentiment, with the April 23 activity (631,975 shares) adding to or maintaining this pressure. This aligns with Slick’s concern about short-sellers doubling shorts at AU$3 (late 2024), contributing to the SP drop from AU$8.79 (September 2024) to AU$2.13-$2.22 (April 2025).
2. Price Pressure:
   • Short-selling increases share supply, potentially depressing SP. The 631,975 shares shorted on April 23 (valued at ~AU$1.35 million at AU$2.13) could have contributed to downward pressure, though CU6 gained 18.01% that day (to AU$2.13), suggesting other factors (e.g., sector momentum, Telix’s 10.84% gain) offset shorting.
   • Slick’s “bull-trap” fear (post-April 17, 2025, 12.02% surge to AU$1.88) is relevant, as short-sellers may be selling into rallies (e.g., AU$2.13) to cap gains, expecting a reversal (e.g., at AU$2.35 resistance). The 0.19% daily shorting supports this, indicating active short-seller engagement.
3. Retail Sentiment:
   • HotCopper: Retail investors are frustrated by the 6% short position, suspecting institutional lending (e.g., ~13% institutional stake, TM Ventures’ 7.2%) enables short-sellers, as seen in posts questioning price drops (December 21, 2024). The 0.19% daily shorting reinforces distrust, aligning with Slick’s “shenanigans” post-ASX 200 inclusion.
   • X (

     @asxpeasant

     , April 23, 2025): Notes CU6’s “hell of a sell off” but sees it as “not one to take your eyes off,” reflecting cautious optimism despite shorting. The 631,975 shares shorted may temper retail enthusiasm, as investors fear further SP suppression.
   • Slick’s View: The “what did they know then?” question about the AU$3 shorting surge suggests retail suspicion of short-seller motives. The 0.19% daily shorting indicates ongoing bearish bets, possibly targeting biotech volatility or perceived overvaluation (AU$713.4 million market cap).
4. Investment Implications:
   • Bearish Signal: The 0.19% daily shorting, within a 6% total position, signals persistent bearish sentiment, potentially capping SP near resistance (AU$2.35, per March 28, 2025, analysis). This supports Slick’s bull-trap concern, as short-sellers may resist a rally to the AU$7.13 analyst target (221% upside from AU$2.22).
   • Short Squeeze Potential: Strong catalysts (e.g., SECuRE Phase II data, mid-2025) could force short-sellers to cover, especially after the April 16, 2025, notice of reduced short activity. The 631,975 shares shorted on April 23 suggest short-sellers remain active, increasing squeeze potential if SP breaks AU$2.35.
   • Risk-Reward: At AU$2.13-$2.22, CU6 is a speculative buy (per prior analysis, 30-40% chance of AU$7.13, 60-70% chance of AU$5.20). The 0.19% daily shorting adds risk, but proximity to support (AU$1.80-$1.90) and fundamentals (92% PSA reduction, Nusano deal) make it attractive for high-risk investors.
5. Context with 6% Short Position:
   • The 6% total short position (likely ~19.3 million shares) is “serious” for biotech (per Slick), far exceeding the 0.19% daily figure (631,975 shares). This suggests the April 23 shorting is part of a broader bearish strategy, possibly by institutional funds (suspected by

     @asxpeasant

     ), leveraging CU6’s volatility (10% weekly) and sector risks.
   • The daily shorting aligns with retail fears of institutional “shenanigans,” as lending by major shareholders (e.g., institutions, TM Ventures) enables short-sellers, depressing SP. However, the April 17, 2025, 12.02% surge and covering (April 16) indicate short-seller vulnerability, supporting a speculative buy at current levels.

Conclusion for CU6: The 0.19% daily short sales (631,975 shares) on April 23, 2025, reflect ongoing bearish pressure within the 6% total short position, potentially capping SP gains and validating Slick’s bull-trap concern. However, CU6’s strong fundamentals (SECuRE trial, AU$7.13 target) and short squeeze potential make it a speculative buy at AU$2.13-$2.22 for high-risk investors, despite shorting risks. The daily shorting is modest compared to the cumulative position, suggesting it’s a continuation of existing bearish bets rather than a new surge.

AIIO H8tey