At the start of the week I like to take a look at ASIC's short position report to find out which shares have been targeted by short sellers.
I think it is worth keeping an 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 its run as the most shorted share on the Australian share market, albeit with short interest decreasing to 19.2%. Short sellers have been targeting JB Hi-Fi due to concerns that online competition and a cooling housing market are negatively impacting its businesses.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest fall week on week to 16.6%. Short sellers appear to have been closing positions after the graphite miner released a positive production update.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest push higher again to 16.4%. Short sellers have been targeting the lithium miners due to forecasts of a future oversupply of the battery making ingredient.
- Orocobre Limited (ASX: ORE) has short interest of 13.8%, down slightly week on week. As with Galaxy, this lithium miner is being targeted largely due to fears that lithium prices will crumble in the coming years from oversupply.
- BWX Ltd (ASX: BWX) has seen its short interest rise again to 13.7%. The slowdown in sales of its key Sukin product range and underperforming acquisitions appear to have caught the eye of short sellers.
- Inghams Group Ltd (ASX: ING) has 13.3% of its shares held short, up slightly since last week. Last week the poultry company's shares charged to an all-time high, much to the disappointment of short sellers.
- Metcash Limited (ASX: MTS) has 12.9% of its shares in the hands of short sellers, up slightly week on week. Last week the wholesale distributor's shares sank lower after its half year result fell short of expectations.
- InvoCare Limited (ASX: IVC) has 11.6% of its shares held short, down meaningfully since last week. Short sellers have been shorting its shares this year due to a sudden slowdown in its earnings growth.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 11.5%. The department store operator continues to be targeted by short sellers due to its weak sales figures so far in FY 2019.
- NEXTDC Ltd (ASX: NXT) has 11.1% of its shares held short, which is flat week on week. Short sellers don't appear to believe that NEXTDC is deserving of its sky high PE ratio.
