As seen in past few months, Syrah Resources has topped the list of short-selling stocks on ASX. While the overall performance of the group and recent developments cap a few concerns on short selling for Syrah, below is a look at other four stocks that are seen to join the bandwagon lately.
 

Independence Group NL

Completion of the Stockman Project divestment: Independence Group NL (ASX: IGO) having a short-selling interest of about 18% at the back of some delays in production, has completed the Stockman Project divestment to CopperChem Limited (CopperChem), which is a subsidiary of Washington H. Soul Pattinson and Company Limited. The company had entered into an agreement to sell its Stockman Project for total proceeds of up to A$47.2 million, that includes A$32.2 million in cash payments and a 1.5% net smelter return (NSR) royalty with a provisional value of up to $15 million. Moreover, the transaction was subject to the satisfaction of certain conditions which is done and is granted Ministerial approvals. Additionally, Tropicana Joint Venture (TJV) has committed to both the Long Island mining strategy and the process plant improvement project, to further increase processing plant capacity and improve metallurgical recovery. Meanwhile, IGO stock has risen 32.70% in three months as on January 5, 2018. As of now, we give a “Hold” recommendation on the stock at the current price of $4.91
 

JB Hi-Fi Ltd

Reaffirmed FY18 Group sales guidance:JB Hi-Fi Ltd (ASX: JBH) had reaffirmed the FY18 Group sales guidance of total sales of circa $6.8 billion (JB Hi-Fi $4.65 billion and The Good Guys $2.15 billion). The company expect to achieve the upper end of the synergy target of $15 million - $20 million, which is to be fully realised in FY19, one year earlier than originally projected, and approximately half of the benefit is expected to be achieved in FY18. JBH expects the remaining $2 million - $4 million of implementation costs to be incurred in the first half of FY18. Further, the company had completed a review of the New Zealand business, and has developed a two-year strategy to improve performance.  Meanwhile, JBH stock has risen 14.25% in last three months as on January 5, 2018 and is trading at a relatively high P/E given the challenges in retail sector. The stock has witnessed a short-selling interest of over 15%. We give an “Expensive” recommendation on the stock at the current price of 26.61
 

Domino's Pizza Enterprises Ltd

Acquired 170 store- Hallo Pizza chain in Germany:Domino's Pizza Enterprises Ltd.’s (ASX: DMP) stock edged higher on January 8, 2018, as the company completed the acquisition of the 170 store Hallo Pizza chain in Germany. Meanwhile, DMP has reaffirmed the underlying NPAT growth to be in the region of 20% for FY18. DMP has also reaffirmed its aim to open between 180 and 200 organic new stores in FY18, in addition to the 170 stores added with the Hallo Pizza acquisition. On the other hand, DMP stock is trading at an unreasonable P/E and we keep a watch on any potential dip while the market has a mixed opinion on the future performance. The stock looks “Expensive” at the current price of $46.35
 

Healthscope Ltd

Appointment of Michael Stanford:Healthscope Ltd (ASX: HSO) has announced the appointment of Michael Stanford as a Non-Executive Director of the company with effect from 26 March 2018. Moreover, in FY18, the current private hospital market conditions are expected to continue in the short term and this has kept the pace in short-selling of the stock. The company has established four “Must Win” initiatives to drive FY18 performance by developing and improving the core business while delivering on the expansion program. For the Hospitals division, FY18 operating EBITDA is expected to be broadly similar to FY17. 1HFY18 Operating EBITDA is projected to decline year on year. The 2HFY18 Operating EBITDA is expected to deliver growth year on year, with that momentum to carry forward into FY19 and beyond. Meanwhile, HSO stock has risen 17.88% in three months as on January 5, 2018. Given the long-term potential, we put a “Buy” recommendation on the stock at the current price of $2.09
 

Current hospital expansion program (Source: Company reports)

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