WEEKLY: What's Short On The ASX?

*Kirkland Lake Gold (KLA.AX) jumps into 4th spot
*Nufarm's (NUF.AX) positive $1.2bn asset sale sees it drop to 14th
*Syrah Resources (SYR.AX) still the most shorted

Kirkland Lake Gold (KLA.AX)

Kirkland Lake Gold is a Canadian-based mid-tier gold mining, development and exploration company with gold mines across Canada and Australia. Its list of gold mines in Northeastern Ontario, Victoria, and Northern Territory include Macassa, Fosterville, Holt, Taylor, Cosmo and Stawell. The company has generated year-to-date returns of +78% but recently saw its short-sell ratio jump up to ~15%, making it the fourth most shorted stock on the ASX last week, up from a previous rank of 207. Short selling has surprisingly been driven on the back of KLA's Q3 Production Report which showed 248k oz. of gold production in Q3 and cash in the bank of $615m. Gold spot trading at US$1,490 is only marginally off August highs of US$1,553. 

Nufarm (NUF.AX)

Following our review of Nufarm's $1.2bn asset sale that drew positive conclusions, short selling in the stock has fallen -0.4% on the prior week. Nufarm currently sits as the 14th most shorted stock on the ASX having previously occupied 9th position. Given the accretive economics of Nufarm's asset sale, we think this bodes well for further declines in the amount of short selling on the stock. Support around A$5.40 may be provide good value as a longer-term entry point. 

Top 20 shorts on the ASX

Top 20 most shorted ASX stocks. Short sell ratio = short sell volume/issued capital. Source: Eikon