While most investors want share prices to appreciate, not all of them do.
Some will borrow shares to sell on market with the aim of buying them back at a cheaper price further down the line.
This high risk investment strategy is known as short selling or shorting.
According to the most recent data provided by ASIC, the 10 most shorted shares on the ASX at present are as follows:
Syrah Resources Ltd (ASX: SYR) remains the most shorted share on the ASX with short interest of 19.7%. Delays at its massive Balama graphite project ahead of its opening are likely to be behind the negative sentiment.
Western Areas Ltd (ASX: WSA) has seen its short interest rise sharply to 19.5%. Unfortunately for short sellers the nickel producer's shares performed strongly last week after it reported net profit after tax growth of 165% to $19.3 million.
Orocobre Limited (ASX: ORE) has short interest of 19.3%, up slightly on last week. The lithium miner continues to come under attack from short sellers this year following a number of disappointing production downgrades.
Myer Holdings Ltd (ASX: MYR) has 16.2% of its shares in the hands of short sellers. Short sellers have been targeting the department store operator after it downgraded its full-year profit guidance.
Independence Group NL (ASX: IGO) has seen short interest rise to 14.8%. Short sellers have targeted the gold miner this year due to its increasing all-in sustaining costs and delays at its Nova operation.
Retail Food Group Limited (ASX: RFG) has 12.5% of its shares held short again. Short sellers may want to be careful with this one though, as later this week the food and beverage company will report its full-year results.
Select Harvests Limited (ASX: SHV) has 12.3% of its shares in the hands of short sellers. It isn't hard to see why its shares have been targeted. Last week the almond producer posted a 73% decrease in reported net profit after tax.
Aconex Ltd (ASX: ACX) has short interest of 11.7%. The software-as-a-service company's shares fell over 10% last week after it reported its full-year results. At the current share price I think Aconex could be worth a closer look.
Domino's Pizza Enterprises Ltd. (ASX: DMP) has 11.3% of its shares held short. Short sellers appear to be targeting the pizza chain operator due to its earnings miss earlier this month.
Mayne Pharma Group Ltd (ASX: MYX) has short interest of 11.4%. Despite the fact the pharmaceutical company's shares are just 1.5 cents off their 52-week low, short sellers appear to believe they can still sink lower.
