At the start of each week I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
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:
- Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the Australian share market with short interest of 12.2%. The department store operator looks likely to be negatively impacted by the pandemic and the accelerating shift to online shopping.
- Speedcast International Ltd (ASX: SDA) has short interest of 11.7%. This communications satellite technology provider's shares are still suspended as it sorts out its bankruptcy. Short sellers look set to win big from this bet.
- Webjet Limited (ASX: WEB) has seen its short interest jump to 11.2%. It looks as though short sellers are targeting the online travel agent due to its valuation and concerns that the coronavirus outbreak in Victoria could delay the domestic travel market's recovery.
- Inghams Group Ltd (ASX: ING) has 9.6% of its shares held short, which is up slightly week on week once again. Earlier this year the poultry company warned that the pandemic had negatively impacted its sales mix. This could mean Inghams disappoints with its full year result in August.
- Nearmap Ltd (ASX: NEA) has seen its short interest edge lower again to 8.1%. Short sellers appear to be closing their positions after the Nearmap business model held up during the pandemic. Demand for the aerial imagery and location data technology company's services has been robust during the crisis.
- Bank of Queensland Limited (ASX: BOQ) has seen its short interest remain flat at 8.1%. Earlier this year the regional bank released a soft half year result and warned of tough times ahead.
- Galaxy Resources Limited (ASX: GXY) has 8% of its shares held short, which is flat week on week. Galaxy and fellow lithium miners have come under pressure again this year due to the sustained weakness in the price of the battery making ingredient.
- Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise slightly to 8%. This biopharmaceutical company's lofty valuation may be attracting short sellers.
- FlexiGroup Limited (ASX: FXL) is a new entry in the top ten with short interest of 7.6%. While the financial services company's buy now pay later offering may be growing quickly, short sellers appear concerned over the rest of the business.
- Orocobre Limited (ASX: ORE) has seen its short interest rise to 7.2%. As with Galaxy, short sellers have been going after Orocobre due to ultra-low lithium prices.
