Here are the most shorted ASX shares this week

BWX Ltd (ASX:BWX), Galaxy Resources Limited (ASX:GXY), and NEXTDC Ltd (ASX:NXT) shares are being targeted by short sellers this week…

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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.
Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited and NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended 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.

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