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.
Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group 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.
- 5 things to watch on the ASX 200 on Tuesday – October 27, 2020 6:36am
- Why these ASX mid cap tech shares could smash the market in the 2020s – October 26, 2020 6:00pm
- 3 of the best blue chip ASX shares to buy in November – October 26, 2020 4:30pm