Article: Caught in a bear trap: How ‘short and distort’ attacks are costing Australian investors billions

Article - Media

Caught in a bear trap: How ‘short and distort’ attacks are costing Australian investors billions

Adele Ferguson

Sydney Morning Herald,

Australia has become a paradise for a new, aggressive form of short selling. And regulators’ failure to act is costing investors billions.

Dubbed the “short and distort” gang, a group of largely foreign-based research houses issue highly damaging reports, designed to cause maximum damage to the companies they target.

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Article: ASIC probes ‘naked’ short selling

Article - Media

ASIC probes ‘naked’ short selling

John Kehoe

Australian Financial Review, 23 March 2020

The securities regulator is looking out for illegal “naked” short selling by stock traders, in response to a rise in the number of investors failing to settle share trades during the recent financial market turbulence.

Naked short selling is illegal, and occurs when a short seller has executed a trade without a securities lending arrangement with a third party.

Companies with notable net short sales of their stock include Galaxy Resources (19 per cent), Syrah Resources (17.5 per cent), Metcash (13 per cent), Inghams Group (12.6 per cent), JB Hi-Fi (9.5 per cent), Costa Group (8.8 per cent), Myer (8.3 per cent), Perpetual (8.2 per cent), Bega Cheese (8 per cent), Bank of Queensland (7.8 per cent), Blackmores (7.8 per cent), Bendigo and Adelaide Bank (7.7 per cent), Webjet (7.7 per cent), Flight Centre (6.5 per cent), Kogan (6.5 per cent), Domino’s Pizza (6.2 per cent), Seek (6.2 per cent) and AMP (6.2 per cent) as of March 17, according to ASIC data.

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