Mining services companies are being increasingly targeted by short-sellers recently, as a reflection of the negativity surrounding the mining boom

Tom McKay

Mining services companies are being increasingly targeted by short-sellers recently, as a reflection of the negativity surrounding the mining boom. Whilst retail and media stocks remain favourites for shorts, Transfield, UGL and Boart Longyear are now in the top 20 shorted stocks in the ASX 200, joining Bradken and Monadelphous. Platypus Asset Management founder Donald Williams said ''It is a reflection of the view that the mining boom is over, but added that 'if you're shorting them here, you're pretty late to the party. The down move has been substantial and a lot of them are pretty cheap. You're basically expecting them to go broke.'' Many of the mining engineering companies have reported large multi-million dollar losses this year. However, some highly shorted companies have bucked the trend, with Flight Centre surprising the market with a record $246 million profit, sending its shares to an all-time high. (VIEW LINK)


About this contributor

Tom McKay

Tom McKay

Managing Director and Co-Founder, Livewire

I'm the Managing Director and Co-Founder of Livewire. I'm passionate about collecting and curating the markets most informed insights every day so that our members can discover new investment ideas. If you would like to get in touch - please use...

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