Buy Hold Sell: 3 of the ASX’s most shorted stocks (and 2 long-term buys)

Buy Hold Sell, by Livewire Markets

Since the beginning of the year, the total level of shorting on the ASX has risen 16.2%. According to Shortman.com, there is now $25.5 billion being borrowed today to bet against the country's 100 biggest shorts.

Short sellers borrow shares in a company at the current market price in the hope they can buy back those shares (close a position) once the company's share price has fallen. Many do this in times when sentiment is falling or a business faces short-term headwinds, rather than long-term structural changes - as short-term fluctuations in share price can be incredibly painful - think GameStop.

So are there any long-term opportunities the short sellers are missing?

To find out, Livewire's Ally Selby was joined by Sage Capital's Sean Fenton and Perpetual Asset Management's Sean Roger for their analysis of three stocks with high levels of short interest.

And just because I know you all love a stock pick, our guests also name a high-conviction position they are backing for the year ahead.

Note: This episode was recorded on Wednesday 17 May 2023. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-3-of-the-asx-s-most-shorted-stocks-and-2-long-term-buys/