For those doubting the short squeeze scenario you might the following AFR Street Talk article interesting. Sentiment is changing with lithium shares lead by the PLS Quarterly and China getting back in the gain, plus a nice shove from Biden. Shorters will feel great pain when sentiment turns against them. TG's on market buy and release during trading a master stroke on Friday IMO. Text of article below:
"Street Talk Hedge funds back off Breville, feel the pain Anthony Macdonald, Sarah Thompson and Kanika Sood Jan 24, 2023 – 9.32pm
Hedge funds are on edge about a collective $215 million short position in appliances maker Breville Group, worried they’re about to be scorched by a raging market. The skittishness was there for all to see on Tuesday, when a seemingly innocuous broker upgrade and strong sales numbers at Myer sent Breville’s shares flying. The upgrade, out of Tom Keirath at Barrenjoey, was more about Breville’s share price action (or inaction) and bearishness in the market, than any big turnaround at Breville. Indeed, the analyst cut FY23 sales and EBIT forecasts by 0.4 per cent, and shaved slightly more off its FY24 expectations. While Kierath is closely followed, it wasn’t the sort of upgrade that would normally send a company’s shares up 7.5 per cent on big volume (for a thinly-traded stock). Old heads reckon there was more than a touch of short squeeze about the unusual move, as shorters were scared off by raging sentiment towards small cap retail stocks.Long-only managers were licking their lips. There were 10.3 million Breville shares reported as sold short at January 18, the most recent data point available from ASIC, worth 7.22 per cent of its issued equity or a combined $215 million. If you exclude Premier Investments’ 25 per cent stake, it’s worth about 10 per cent of Breville’s free float. Hedge funds have been backing out of the trade since early November, when Breville short positions peaked at 9.2 per cent of issued equity, and look like they’re headed lower. The stock’s up 24 per cent this month. The hardcore Breville watchers (like Keirath) are hanging out for results from rival De- Longhi later this week and Electrolux next week. Breville’s first half numbers are due on February 14.
Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies."
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