Every Monday I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
This is because I believe it is well 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:
- Webjet Limited (ASX: WEB) remains the most shorted share on the ASX by some distance after experiencing another increase in its short interest. Almost 15.8% of its shares are held short at present. Short sellers appear to believe Webjet's shares are overvalued given current trading conditions.
- Speedcast International Ltd (ASX: SDA) has seen its short interest remain flat at 10.6%. The communications satellite technology provider's shares remain suspended whilst it completes its chapter 11 recapitalisation.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest reduce materially to 9.4%. Last week the department store operator's shares crashed lower following the release of its full year results. Myer posted a 41.6% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to $305.3 million.
- InvoCare Limited (ASX: IVC) has short interest of 9.2%, which is up week on week once again. Short sellers continues to increase their positions following a weak half year result by the funerals company.
- IOOF Holdings Limited (ASX: IFL) has entered the top ten with 8.5% of its shares held short. Short sellers don't appear convinced by the company's plan to acquire the National Australia Bank Ltd (ASX: NAB) wealth business, MLC Wealth for $1,440 million.
- Inghams Group Ltd (ASX: ING) has 8.2% of its shares held short, which is up slightly week on week. Short sellers aren't giving up on the poultry company despite a high level of insider buying recently.
- CLINUVEL Pharmaceuticals Limited (ASX: CUV) has also seen its short interest increase slightly to 8.1%. However, last week the biopharmaceutical company's shares stormed higher after it announced plans to extend the use of its SCENESSE product to treat xeroderma pigmentosum.
- FlexiGroup Limited (ASX: FXL) has 7.7% of its shares held short, which is flat week on week. This morning the financial services company's shares are pushing higher after it announced plans to expand its buy now pay later platform into New Zealand.
- Bank of Queensland Limited (ASX: BOQ) has seen its short interest rebound to 7.3%. Short sellers have been going after the regional bank this year after it warned that trading conditions were expected to remain tough for some time to come.
- Nearmap Ltd (ASX: NEA) has entered the top ten with 7% of its shares held short. Much to the delight of short sellers, last week the aerial imagery technology and location data company's shares crashed lower following a surprise capital raising.
