At the start of every week I like to take a look at ASIC's short position report table to see which ASX shares are currently being targeted by short sellers.
Unlike the majority of investors, short sellers want share prices to fall in value. They attempt to make profit by borrowing shares to sell on market, with the aim of buying them back at a lower price.
Here are the 10 most shorted shares on the ASX this week:
- Myer Holdings Ltd (ASX: MYR) continues to be the most-shorted share on the ASX and has seen short interest rise to 17.3% since last week. It appears as though short sellers are pessimistic on the department store operator's turnaround.
- Aconex Ltd (ASX: ACX) has 15.5% of its shares in the hands of short sellers. Despite the software-as-a-service company's shares losing 35% of their value in the last month, some investors appear to believe they could fall further still.
- Western Areas Ltd (ASX: WSA) has seen short interest increase to 13.5%. With nickel prices likely to be subdued for the next 12 months, the leading nickel producer could be set for a turbulent time.
- TFS Corporation Limited (ASX: TFC) has 11.8% of its shares held short again this week. The company expects to post adjusted cash EBITDA growth of at least 25% in FY 2017, but some investors appear doubtful.
- Vocus Group Ltd (ASX: VOC) has seen short interest drop to 11%. This week Vocus will announce its half-year results. I expect there's a good chance of a strong result and a rally in its share price, so short sellers might want to be careful with this one.
- Nine Entertainment Co Holdings Ltd (ASX: NEC) has 10.8% of its shares held short. This is the second week in a row that short interest in the media company has increased.
- Mayne Pharma Group Ltd (ASX: MYX) has seen short interest climb 10.2%. Short sellers appear to be targeting the pharmaceutical company on the back of fears of how President Trump's policies could impact the pharmaceutical industry.
- Syrah Resources Ltd (ASX: SYR) has short interest of 10.1%, up slightly on last week. Despite the short interest I think this graphite miner is starting to look attractive after a steep drop in its share price.
- Worleyparsons Limited (ASX: WOR) has seen short interest remain flat at 10.1%. This morning the mining services company reported a 110% drop in statutory net profit when it posted a $2.4 million loss. Its shares look set to tumble on the news, much to the delight of short sellers.
- Metcash Limited (ASX: MTS) has short interest of 9.9%, up slightly on last week. Despite this week's rise, the wholesale distributor has seen short interest fall sharply this year. Which could be a sign that the market is becoming bullish on the company.
