At the start of the week I like to take a look at which shares short sellers are tipping to decline in value over the coming months.
According to the most recent data from ASIC, these are the 10 most shorted shares on the ASX at present:
- Syrah Resources Ltd (ASX: SYR) has become the most shorted share on the ASX with short interest of 19.3%. Delays at its massive Balama graphite project are likely to be behind the rise.
- Orocobre Limited (ASX: ORE) has seen its short interest fall to 18.7%. The lithium miner has come under attack from short sellers this year due to a number of production downgrades.
- Western Areas Ltd (ASX: WSA) has experienced a sharp decline in short interest to 18.4%. With the nickel miner's shares up 25% since June 22, short sellers appear to have been cutting their losses.
- Myer Holdings Ltd (ASX: MYR) once again has 16.6% of its shares in the hands of short sellers. Short interest in the department store operator built after its recent full-year profit guidance downgrade.
- Independence Group NL (ASX: IGO) has seen short interest fall slightly to 14.1%. The gold miner disappointed the market this year with delays at its Nova operation and its increasing all-in sustaining costs.
- Retail Food Group Limited (ASX: RFG) has 12.5% of its shares held short. The food and beverage company's shares are down sharply this year due to a surprise profit downgrade.
- Ardent Leisure Group (ASX: AAD) has short interest of 11.7%, down slightly for a second week in a row. Management recently revealed that this year the company expects to deliver core EBITDA of $76 million, ahead of its guidance of $73 million to $75 million.
- Select Harvests Limited (ASX: SHV) has surged into the top ten with short interest of 11.6%. Despite the almond producer's shares falling 35% this year, short sellers appear to believe they can fall further.
- Galaxy Resources Limited (ASX: GXY) has climbed into the top ten with short interest of 11.6%. Although the lithium miner has a high level of short interest, I still think it is one of the better options in the sector.
- iSentia Group Ltd (ASX: ISD) has 11.5% of its shares held short. A surprise full-year profit downgrade appears to be the catalyst for the sudden increase in short interest.