At the start of each week I like to look at ASIC's short position report in order to find out which are the most shorted ASX shares.
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 ASX shares this week according to ASIC:
- Myer Holdings Ltd (ASX: MYR) remains the most shorted ASX share after its short interest rose to 14.6%. Short sellers may be concerned that the recovery of its department stores has been materially derailed because of the pandemic.
- Speedcast International Ltd (ASX: SDA) has short interest of 13.2%, which is flat week on week. This communications satellite technology provider's shares remain suspended while it declares itself bankrupt.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest fall week on week again to 12.5%. The lithium miner's shares have fallen heavily over the last 12 months due to falling lithium prices.
- Orocobre Limited (ASX: ORE) has seen its short interest drop lower again to 10.8%. A collapse in the price of lithium and production disruptions during the pandemic have been weighing heavily on Orocobre's shares.
- Super Retail Group Ltd (ASX: SUL) has seen its short interest rise to 9.6%. The market appears concerned that Super Retail's portfolio may be more exposed to the pandemic than others.
- Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.5%, which is up slightly week on week. Pilbara Minerals is another lithium miner which has been targeted due to weak prices. There are also concerns that a recovery in the demand for the battery making ingredient could be delayed because of the pandemic.
- JB Hi-Fi Limited (ASX: JBH) has seen its short interest fall sharply week on week to 9.3%. Short sellers are continuing to close positions, possibly due to the retailer performing strongly during the crisis.
- Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest slide to 9.3%. This biopharmaceutical company's shares are trading at a premium which some investors appear to believe is excessive.
- Inghams Group Ltd (ASX: ING) has short interest of 8.8%, which is down week on week again. Short sellers continue to close their positions, possibly on the belief that the poultry company's shares have bottomed now.
- Bank of Queensland Limited (ASX: BOQ) has entered the top 10 most shorted ASX shares with short interest of 8.8%. The regional bank has been struggling this year and short sellers don't appear to believe the worst is over just yet.
