"
interestingly syr is not on the list of short sellers based on the article."
Seems the article is focused on companies from QIN #5 @ 13.91% down. SYR is @ #4 with 15.04% shorted and the other 3 top shorted stocks are also not mentioned. Cold comfort IMO these top 4 are not mentioned.
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
| 1 |
1 |
ORE |
OROCOBRE LIMITED ORDINARY |
19.52% |
1.78 |
| 2 |
2 |
WSA |
WESTERN AREAS LTD ORDINARY |
18.37% |
0.74 |
| 3 |
3 |
ACX |
ACONEX LIMITED ORDINARY |
17.81% |
0.05 |
| 4 |
4 |
SYR |
SYRAH RESOURCES ORDINARY |
15.04% |
1.35 |
| 5 |
5 |
QIN |
QUINTIS LTD ORDINARY |
13.91% |
13.91 |
This is an extract of an article in the Australian on this subject - SYR gets a mention and shows shorters don't always get it right.....
What Lew’s Myer raid teaches us about short sellers
Sell high, buy low
If you don’t understand
shorting, here’s my favourite definition from Ray Scott, who runs the excellent free site
www.shortman.com.au: “It is a method where you sell first and buy later. If the price of the stock drops, then you are selling for a higher price than you bought for so you make a profit.” (You can sell first because you borrow the stock and pay a fee for doing so … the ultimate lenders of the stock are often big super funds.)
Maybe you don’t agree with shorting. Perhaps you might think it is unfair … Harvey Norman’s Gerry Harvey was quoted in
The Australian a few days ago
saying: “Some shorters are acting like criminals.’’
There is an equally legitimate argument that says shorting is a useful truth serum in any market … bad companies who hide scandal, corruption and incompetence can be found out by shorters.
On a more prosaic level, companies that are simply overpriced will be brought back to earth. A good example might be Bellamy’s, the infant formula company that regularly appeared among the most shorted stock a year ago when it was trading at $16. Today it is trading at $4.47 and the shorts have moved on to pastures new.
For investors, it’s time to make a decision: play or don’t play. Many investors in fund managers now seek funds that at the very least are long/short … that is they have the facility to short stocks if they think it will add to the bottom line.
Separately, every investor needs to know whether a stock they favour is on the radar for the shorters. For example, if you are a buyer of Nine Entertainment stock, it really is a relevant fact that 10 per cent of the shareholdings in Nine is being held short.
Just a few days ago, we had a new No 1 most shorted stock, Orocobre Ltd, which is a pure play on the ASX for lithium. Now there is endless commentary in investment media about the enthralling prospects for lithium, a key component in the manufacture of everything from smartphones to electric cars, and investors might easily be seduced by these prospects. The same investor would be well served by digesting the fact that 20 per cent of Orocobre’s stock is held by traders betting that the lithium hopeful is riding for a fall.
Single resource focused mining stocks are a regular favourite of shorters because the interaction of these stocks and the underlying commodity price of their resources are so easy to read. Western areas, which is 18 per cent shorted, is a nickel company. Syrah resources, which is 14 per cent shorted, is a graphite company.
Some of the most shorted stocks on the ASX
Of course, the shorts don’t always get a clean result: Glaucus, which has moved on Quintis, wins most but not all of its big bets … and losing bets in this game are very expensive. That’s because while the downside on traditional long stock investing is limited — the most you can lose is everything you invested — shorting losses are theoretically infinite. A stock can rise to any heights and you have to buy it to cover a shorting position.
Perhaps the sweetest victories come to management who beat off the shorts through running their business better than anyone might have expected: in July 2011 the most shorted stock was JB Hi Fi. It was $15 at the time …. today it is $24.80 … ouch.
http://www.theaustralian.com.au/bus...s/news-story/3058cdcd4c8df15c377838daa160d3ac
(20min delay)