Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Australia’s 3 most shorted stocks examined

We examine three of the most shorted stocks on the ASX, according to ASIC data as of 28 April.

Short wrap Source: Bloomberg

Myer share price: change remains the only constant

Caught between a tectonic shift in consumer behaviour and a global pandemic, it should come as little surprise that a high percentage of the iconic Australian retailer’s stock is currently held short.

A quick glance between decades illustrates that consumer shift with significant clarity. For example, in FY10 Myer reported total revenue from sales of goods at $2,825 million against an operating gross profit of $1,317 million. By FY19 however, Myer’s revenue had not only not grown, it had slumped, with the retailer reporting revenue from goods sold at $2,345 million against operating gross profits of $1,162 million.

Myer’s diluted earnings per share (EPS) fared even worse over the decade, falling to 3.0 cents per share in FY19 from 12.1 cents per share in FY10.

The coronavirus pandemic has also compounded these issues, with Myer temporarily closing all of its physical stores until at least 11 May. Myer’s online businesses remain open.

13.83% of Myer's stock is currently held short.

Galaxy Resources share price slumps as lithium demand wanes

As oversupply issues continue to plague global lithium markets, in the last year, the share price the Australian-based lithium miner Galaxy Resources has fallen over 50% – to last trade at 73 cents per share.

Though lithium prices almost tripled between 2015 to 2018, according to Bloomberg, the price of the commodity – as well as stocks such as Galaxy – have since tapered off, as the electric vehicle revolution fails to take off as quickly as some were expecting.

With that in mind, according to S&P Global, Platts:

‘2020 will be a key year for the future long-term lithium supply: if some new projects don't find the required financing in the coming months, the current oversupply is likely to suddenly shift into shortage in a few years as electric vehicles spread out global.’

13.62% of Galaxy Resources stock is currently held short.

Speedcast share price: a tangled story

Speedcast International was first placed in a trading halt and then suspended from official quotation in February 2020. This went on into March, where the company finally released its preliminary FY19 report.

The results here were dour, with the company booking an NPAT loss of US$459.8 million. Subsequently Speedcast requested that its suspension be extended at the end of March, before announcing in late-April that it would be aiming to recapitalise its balance sheet through chapter 11 proceedings.

Today, in another twist to this ever-evolving story, it was revealed that 'the United States Bankruptcy Court has made an interim order imposing certain restrictions on trading in the Company's shares , in particular, on proposed transactions by a “Substantial Stockholder”.’

Though Speedcast’s shares currently remain suspended from official quotation, prior to that, many investors were betting on the company’s decline, with 13.17% of its issued stock held short.

In the short period that Speedcast’s stock was tradable in CY20, its share price fell 16.84%.

UPDATE: the latest ASIC short sale report puts News Corps A Non-voting CD1 1:1 a shade ahead of Speedcast in percentage terms, with a 13.2% short interest.

How to trade markets – long or short

You can use IG’s world-class trading platform to trade equities, indices and currencies – long or short. While you can’t trade the likes of Speedcast, given it remains suspended from quotation, you can trade any of the other stocks we have discussed today.

For example, to buy (long) or sell (short) Myer using CFDs, follow these steps:

  • Create an IG trading account or log in to your existing account
  • Enter ‘Myer' or ‘MYR’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.