Day: November 8, 2021

These are the 10 most shorted ASX shares

most shorted ASX shares

Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

  • Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest remained flat week on week at 12.1%. Short sellers will have been disappointed to see Flight Centre’s shares jump today after the US announced the reopening of its borders.
  • Kogan.com Ltd (ASX: KGN) has short interest of 10.7%, which is up notably week on week. Short sellers appear to be targeting this ecommerce company due to inventory issues and its slowing sales growth.
  • Redbubble Ltd (ASX: RBL) has short interest of 10.4%, which is up slightly since last week. Short sellers have been increasing their positions in this ecommerce company since the release of a disappointing quarterly update.
  • Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up slightly week on week. Valuation concerns appear to be the reason for this high level of short interest.
  • Zip Co Ltd (ASX: Z1P) has seen its short interest jump to 8.9%. Short sellers have increased their positions despite the buy now pay later provider delivering a record monthly performance in October.
  • Mesoblast limited (ASX: MSB) has short interest of 8.8%, which is down slightly week on week. Concerns that this biotech company will have to raise funds soon could be weighing on sentiment.
  • Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.6% of its shares held short, which is up week on week once again. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
  • Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is flat week on week. Last week this poultry producer’s shares sank after revealing that higher grain costs were impacting its financial performance.
  • Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week once again. Short sellers have been targeting this energy company due to concerns over the Sole Gas operation.
  • BHP Group Ltd (ASX: BHP) has seen its short interest remain flat week on week at 6.9%. The softening iron ore price could be behind this high level of short interest.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in Flight Centre right now?

Before you consider Flight Centre, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Flight Centre wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Aristocrat (ASX:ALL) share price slides amid takeover update

A disappointed man slumps in his chair and holds his head while playing an online game

The Aristocrat Leisure Limited (ASX: ALL) share price fell by the wayside today. This comes after the gaming technology company shared an update regarding its attempt to acquire leading global online gambling software supplier, Playtech.

By the end of Monday’s session, shares in Aristocrat Leisure were trading 2.1% lower to $47.25. As a result, the company is now trading 4.8% below its 52-week high.

Let’s take a deeper look at the latest ASX announcement for Aristocrat Leisure.

Playing snakes and ladders with Playtech

Despite having already successfully raised $895 million in capital to fund the Playtech acquisition, Aristocrat Leisure has now encountered a potential roadblock.

According to today’s release, Playtech has now entered a dance of courtship with another party. The company received a preliminary approach from Hong Kong-based Gopher Investments, which might amount to a bid of £3 billion (~A$5.46 billion).

Reportedly, Gopher Investments began building its position earlier this year and has become a substantial shareholder in Playtech. At this stage, Gopher has merely sought access to information in order to conduct due diligence. As such, a formal offer may not eventuate, though it can’t be ruled out either.

This development throws a spanner in the works of what looked like a likely deal for the ASX-listed Aristocrat Leisure. Currently, the Aussie gaming company has mostly solidified a deal with Playtech valuing it at approximately A$5 billion.

To raise these funds, the company is issuing 31 million new shares which are expected to hit the ASX in mid-November. Running the numbers, this would represent a dilution of roughly 4.8% of the company’s current shares on issue.

Perhaps the market is concerned Aristocrat will be stuck with $1.3 billion worth of cash and nothing to put it towards.

Lastly, the timing of the announcement is almost uncanny. Today was the last day for the retail component of the capital raise. This would see a further expected A$405 million collected from retail investors.

What’s next for ASX-listed Aristocrat?

Today’s announcements stated that the company would continue to work with Playtech to progress its own acquisition proposal. In fact, the scheme document was mentioned to be published ‘shortly’, recommending shareholders recommend the acquisition.

Finally, Aristocrat noted it would share any further updates relating to its new potential competition. The Aristocrat Leisure share price remains 51% higher year-to-date.

The post Aristocrat (ASX:ALL) share price slides amid takeover update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Aristocrat Leisure right now?

Before you consider Aristocrat Leisure, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aristocrat Leisure wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Here’s why travel shares led the ASX 200 on Monday

Woman in red smiles as she pushes trolley with suitcases across the road at an airport.

Monday has been a big day for ASX 200 travel shares as the sector faced numerous exciting happenings.

Earlier this afternoon (Australian time), the United States’ international borders were flung open to vaccinated travellers.

However, there was perhaps more exciting news for ASX market watchers. This morning, Sydney Airport (ASX: SYD) confirmed it had agreed to a $23.6 billion takeover offer.

As a result, the Sydney Airport share price shot up 2.7% over the course of today. Meanwhile, that of Qantas Airways Limited (ASX: QAN) gained 4%.

Though, it was the ASX 200 travel agents that walked away with the best wins.

The Webjet Limited (ASX: WEB) share price ended Monday’s session 4.7% higher than it did Friday’s.

Flight Centre Travel Group Ltd (ASX: FLT) did even better. Its share price surged 5.7% despite the company’s silence.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.06% today.

Let’s take a closer look at the news that likely piqued the market’s interest in the ASX 200 travel sector on Monday.

ASX 200 travel shares outperform

ASX 200 travel shares had a great day’s trade as the world awaited the United States’ international borders reopening, which happened the moment the market closed.

As of 12:01 am eastern standard time Monday (3:01 pm AEST and 4:01 pm AEDT), vaccinated travellers from all over the world are welcome to travel to the United States for non-essential purposes.

It’s the first time non-essential travel has been allowed into the United States since March 2020 when then-President Donald Trump slammed the borders shut to help stop the spread of COVID-19.

Perhaps in anticipation, some United States-based travel shares surged higher on Friday. Expedia Group Ltd (NASDAQ: EXPE) gained 15% on Friday, while Airbnb Inc (NASDAQ: ABNB) soared 12%.

Those gains might have helped inspire today’s movements on the ASX.

Meanwhile, the market was spoilt by exciting news from Sydney Airport on Monday.

The ASX-listed airline has accepted the Sydney Aviation Alliance’s takeover bid of $8.75 per share.

Though, shareholders might want to wait before getting too excited. The acquisition is still subject to approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. It will also need to be approved by 75% of Sydney Airport’s shareholders.

The post Here’s why travel shares led the ASX 200 on Monday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Flight Centre right now?

Before you consider Flight Centre, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Flight Centre wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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DigitalX (ASX:DCC) share price surges 10% on Bitcoin update

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.

Shares in DigitalX Ltd (ASX: DCC) stormed higher towards the end of market trade on Monday. This came after the blockchain and asset management services company released an update regarding its Bitcoin (CRYPTO: BTC) and digital asset holdings.

At the close of trade today, the DigitalX share price was up 10% at 11.5 cents after earlier surging 15% higher. It’s worth noting that its shares are a whisker away from breaking its multi-year high of 13.5 cents reached last November.

What did DigitalX announce?

At the end of each month, the company provides a snapshot of its funds under management and digital asset exposure.

For October, DigitalX recorded a record high of total funds under management at $38.99 million. This represents a 36.8% increase on the prior month, buoyed by the recent inflows and a strong digital asset market.

DigitalX highlighted a new funds flow of $1 million along with the Bitcoin price soaring to a new all-time high. The company’s Bitcoin and digital asset holdings are valued at $53.77 million, which includes 216 Bitcoin held as corporate treasury.

The company advised the monthly performance for its asset funds was driven by Bitcoin and the DigitalX fund, up 37.46% and 27.82% respectively. In addition, gold and equities from the All Ordinaries Index (ASX: XAO) were mixed, down 1.74% and up 0.12% correspondingly.

Quick take on DigitalX

Founded in 1998, DigitalX is an Australian technology and investment company focused blockchain technology development and digital assets funds management.

DigitalX gives investors a way to gain digital asset exposures through a secure and accessible platform.

The company operates through three segments, blockchain consulting and development, asset management, and other. The latter relates to governance, finance, legal, and risk management, company secretarial and management of the corporate entity.

DigitalX share price summary

Over the last 12 months, the DigitalX share price has lifted close to 60%, with year-to-date gains hovering around 20%.

Based on today’s price, DigitalX commands a market capitalisation of about $81.36 million and has approximately 739.68 million shares outstanding.

The post DigitalX (ASX:DCC) share price surges 10% on Bitcoin update appeared first on The Motley Fool Australia.

Should you invest $1,000 in DigitalX right now?

Before you consider DigitalX, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DigitalX wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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