In today’s briefing:
- Australia: Shorts Surging in SHL, SGP, CAR, COH, ASX, WTC, XRO
- FleetPartners (FPR AU): SG Fleet’s A$3.60/Share NBIO
- Wesfarmers Ltd (WES AU): Synthetic Expert Call Transcript (02 Aug 2026)
- Aussie Shorts [27July 2026]: Pro Medicus, Wesfarmers, Computershare, CSL, ASX, Stockland
- Readcloud Ltd – Forecast to grow well in a defensive sector
- Fortescue Ltd (FMG AU): FY26 Record Shipments, Iron Bridge Impairment, and a Higher FY27 Cost Base
- Island Pharmaceuticals Ltd – Bundibugyo Ebola outbreak accelerates
Australia: Shorts Surging in SHL, SGP, CAR, COH, ASX, WTC, XRO
- There has been a recent surge in short interest in Sonic Healthcare, Stockland, CAR Group, Cochlear, ASX, Wisetech Global and Xero.
- Short interest ranges from 8.7-30.8 days of ADV and from 4.4%-14.4% of free float.
- The market is positioned for the deletion of some of these stocks from a global index in August and there will be covering against the passive flow.
FleetPartners (FPR AU): SG Fleet’s A$3.60/Share NBIO
- Earlier 2025, Sydney PE outfit Pacific Equity Partners privatised SG Fleet (SGF AU), an Aussie provider of fleet leasing services: see SG Fleet (SGF AU): 8th April Scheme Vote.
- Now SG Fleet has tabled a A$3.60/share NBIO for one of its key competitors, FleetPartners Group (FPR AU).
- That’s a 27.2% premium to last close, and ~16% above where Mitsubishi Motors (7211 JP) has built its stake. Expect the ACCC to take a good look at firm terms.
Wesfarmers Ltd (WES AU): Synthetic Expert Call Transcript (02 Aug 2026)
- Strict Return on Capital (ROC) Hurdles vs. Strategic Runways: Wesfarmers maintains a strict pre-tax Return on Capital hurdle rate, typically above 15% for established retail operations. However, it applies structured transactional patience to new growth platforms; Wesfarmers Health (anchored by the $1,025 million API acquisition) currently operates at a low 4.2% ROC as of its latest HY26 report, highlighting a long-term integration and scale runway rather than immediate margin extraction.
- Regulatory Bark Outpaces Operational Bite: Despite intense headline noise from ACCC and Senate inquiries into “big box” pricing and land-banking, the practical margin risk to Bunnings and Kmart is minimal. Their Everyday Low Price (EDLP) structural cost advantage serves as an effective shield, as any regulatory enforcement of price transparency or code of conduct compliance disproportionately harms higher-cost, lower-scale competitors.
- Anko’s Sourcing Moat and Capital Flexibility: Kmart Group’s direct-sourcing model—where the in-house Anko brand represents upwards of 85% of the product mix—insulates it from traditional multi-brand retail margin erosion. This operational cash engine, paired with S&P’s July 31, 2026, revision of Wesfarmers’ downside leverage trigger to 3.0x debt-to-EBITDA, provides substantial balance sheet capacity to fund capital-intensive industrial bets, such as the newly approved $645 million to $715 million Mt Holland lithium expansion.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
Aussie Shorts [27July 2026]: Pro Medicus, Wesfarmers, Computershare, CSL, ASX, Stockland
- Australia’s ASIC releases the aggregated short position data four business days after the reporting day. Data in this insight is up to 27th July, published on the 23st July.
- The largest industry net increase in the past week was A$0.8bn into “Banks”; the largest industry net decrease was A$0.1bn out of “Biotech”. Net shorts inclined A$1.7bn week-on-week.
- Companies mentioned in this regular weekly report include: Pro Medicus (PME AU), Wesfarmers (WES AU), Computershare (CPU AU), CSL (CSL AU), ASX (ASX AU), and Stockland (SGP AU).
Readcloud Ltd – Forecast to grow well in a defensive sector
- ReadCloud Limited (ASX:RCL) provides digital learning solutions to the education sector through its proprietary eBook platform and VET-in-Schools services, partnering with more than 400 schools across Australia and internationally.
- The company released its Q3 FY26 quarterly cash-flow report in-line with RaaS forecasts, demonstrating continued momentum across its core schools businesses despite the seasonally weaker June quarter and the ongoing wind-down of the Southern Solutions Industry Training business.
- Year-to-date (nine months as September year-end) cash receipts from schools reached a record $10.7m (+6% on pcp), led by VET-in-Schools which increased 13% to $5.7m, reflecting continued expansion in the company’s highest-growth division.
Fortescue Ltd (FMG AU): FY26 Record Shipments, Iron Bridge Impairment, and a Higher FY27 Cost Base
- FY26 shipments of 201.3 Mt of iron ore set a record, breaking 200 Mt for the first time, with mining, processing, and rail all at full-year highs.
- Growth is now port-gated at roughly 205 Mtpa, and FY27 C1 guidance of US$20.50 to US$21.75/wmt lifts the cost base by 13 percent.
- At A$18.51, it implies a 9.5x FY26e P/E, 4.5x EV/EBITDA, and a 6.9 percent yield. With costs likely to increase, we see earnings lower for FY27.
Island Pharmaceuticals Ltd – Bundibugyo Ebola outbreak accelerates
- Island Pharmaceuticals Ltd (ASX:ILA) is an antiviral therapeutics company targeting infectious diseases.
- As detailed in our previous note, the unfortunate Bundibugyo Ebola outbreak currently in Africa has provided an opportunity for ILA to provide compassionate use of its drug Galidesivir as a treatment for infected patients, noting that no approved treatment currently exists for this particular strain of Ebola.
- This effectively provides a second pathway for Galidesivir to potentially be approved by the FDA, given that real-world clinical deployment allows for the opportunity to generate prospective human efficacy, safety and virological data.
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