Each week I like to take a look at ASIC’s short position report to find out which shares are being targeted by short sellers. I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right. With that in mind, here are the 10 most shorted shares on the ASX this week: JB Hi-Fi Limited (ASX: JBH) continues as the most shorted share on the ASX with short interest of 19%. One person that doesn’t agree with short sellers is Tim Carleton from Auscap. On Friday…
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Each week I like to take a look at ASIC’s short position report to find out which shares are being targeted by short sellers.
I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right.
With that in mind, here are the 10 most shorted shares on the ASX this week:
- JB Hi-Fi Limited (ASX: JBH) continues as the most shorted share on the ASX with short interest of 19%. One person that doesn’t agree with short sellers is Tim Carleton from Auscap. On Friday he named JB Hi-Fi as a buy at the Sohn Hearts and Mind Conference.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise week on week to 16.6%. Short sellers have been increasing their stakes despite a series of positive announcements out of the graphite miner.
- Orocobre Limited (ASX: ORE) has short interest of 15.3%, down sharply again since last week. Investor sentiment in the lithium space appears to have improved this month. Not least since Orocobre’s investor update.
- Galaxy Resources Limited (ASX: GXY) is another lithium miner which has experienced a decline in short interest. It currently stands 14.9%, down from 15.1% last week.
- Inghams Group Ltd (ASX: ING) has 13.1% of its shares held short, up slightly since last week. The poultry company’s shares hit a 52-week high last week despite concerns that it could be impacted by rising input costs.
- Metcash Limited (ASX: MTS) has 12.3% of its shares in the hands of short sellers. Short sellers appear concerned by increasing competition from the likes of ALDI.
- InvoCare Limited (ASX: IVC) has 12% of its shares held short, which is flat on last week. I suspect that short sellers are targeting the funeral company due to its high PE ratio and low growth prospects.
- Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 11.6%. A disappointing AGM update has brought the pizza chain operator back onto the radar of short sellers.
- BWX Ltd (ASX: BWX) has seen its short interest rebound to 11.4%. The personal care products company may have been targeted due to its slowing Sukin sales.
- Myer Holdings Ltd (ASX: MYR) has climbed back into the top ten with short interest of 10.9%. Last week Myer released its latest sales update and revealed that it has had a very poor start to FY 2019.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and InvoCare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.