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Bank of Queensland remains high on the short seller list

Bank of Queensland remains high on the list of short sellers in the market because of concerns it underperformed and had a weak outlook.

Jul 14, 2020, updated Jul 14, 2020
Novonix shares fell sharply after a placement (Photo: James Gourley/AAP PHOTOS)

Novonix shares fell sharply after a placement (Photo: James Gourley/AAP PHOTOS)

About 8 per cent of its shares are held in a short position, which means there are a significant number of investors betting its share price will fall.

Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money. Short sellers bet on, and profit from, a drop in a security’s price. Short selling has a high risk/reward ratio: It can offer big profits, but losses can mount quickly and infinitely, according to Investopedia.

Shorting can have the effect of putting downward pressure on share prices.

Myer remains the most shorted stock at 12.5 per cent while News Corp’s non-voting shares are at 11.3 per cent.

Travel stocks remain threatened by shorts. More than 5 per cent of the shares in Brisbane travel duo, Corporate Travel Management and Flight Centre are held in short positions because of concerns arising from the collapse of the tourism sector. Webjet is far worse, though, with almost 11 per cent of shares held in shorts.

But the shorts in travel stocks have diminished since Australia’s internal borders started re-opening.

About 5 per cent of Collection House is held in shorts.

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