Myer is the largest shorted stock on the ASX with 18.54% shorted and Metcash is the second largest with 14.1% shorted. In the last 10 days, Myer has gone up more than 20% in price and this is likely to put pressure on the shorters. What I am expecting to see over the next fortnight is for Metcash to become the largest shorted stock in the market as Myer shorters run for safety. The official shorted figures are six days out of date and the Myer shorts have most likely already decreased as the share price rose solidly.
I have had a very good run buying heavily into Myer in January at an average price of $1.41 and now what I am doing is buying heavily into Metcash because I think it can follow Myer and put the same pressure on its shorters. Both stocks fell more than half over the last year to their lows and I believe it is way too much.
GPASAS
MTS Price at posting:
$1.51 Sentiment: Buy Disclosure: Held
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