At the start of each week I like to look at ASIC's short position report in order to find out which shares are being targeted by short sellers.
This is because 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 a company.
With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:
- Galaxy Resources Limited (ASX: GXY) has experienced another decline in its short interest to 16.8%, but remains the most shorted share by some distance. The lithium miner has been targeted due to the oversupply of lithium and a collapse in prices.
- Orocobre Limited (ASX: ORE) has seen its short interest rise week on week to 13.2%. Orocobre is another lithium miner that short sellers have been going after due to falling prices of the battery making ingredient.
- Speedcast International Ltd (ASX: SDA) has short interest of 13.2%. The communications satellite technology provider's shares have been suspended since the start of February. It is currently in discussions with its lender group for an interim funding package, as part of an overall restructuring of its balance sheet.
- JB Hi-Fi Limited (ASX: JBH) has seen its short interest jump to 10.7%. Traders may believe the retailer could be negatively impacted by a potential fall in consumer spending following the coronavirus pandemic.
- Inghams Group Ltd (ASX: ING) has short interest of 10.5%, which is down week on week once again. Short sellers may be closing positions on the belief the poultry company's prospects are improving due to more people eating at home.
- New Century Resources Ltd (ASX: NCZ) has seen its short interest reduce slightly to 9.9%. The base metal producer's shares have fallen heavily this year due to its underwhelming performance. Though, they have started to rebound and are up 200% over the last three weeks.
- Myer Holdings Ltd (ASX: MYR) is a new entry in the top ten with 9.7% of its shares held short. Investors appear concerned that Myer could come out of the pandemic in a dire position.
- Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise to 9.6%. This week the biopharmaceutical company is scheduled to treat its first patient in the United States with its SCENESSE drug. This is around six months after it was approved by the FDA.
- Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.2%, which is down slightly since last week. Earlier this month the lithium miner's moderated production strategy helped the company deliver a strengthened quarter-end cash position. This appears to show that Pilbara Minerals is over the worst of its issues now.
- Super Retail Group Ltd (ASX: SUL) has entered the top ten with short interest of 8.2%. Short sellers may be concerned that this retail group will experience a notable decline in demand for some of its offering in the current environment. Especially its BCF and Macpac businesses.
