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) has seen its short interest reduce slightly to 14.3%, but not enough to stop it from being the most shorted ASX share. Short sellers have been going after the online travel booking company due to concerns over its valuation and rising COVID-19 levels globally. The latter could potentially push back the global travel market recovery.
- Speedcast International Ltd (ASX: SDA) has short interest of 10.6%. The communications satellite technology provider's shares remain suspended whilst it undertakes a recapitalisation. Speedcast shares have been suspended since February.
- InvoCare Limited (ASX: IVC) has short interest of 9.8%, which is down slightly week on week. The funerals company has come under pressure this year after COVID-related restrictions impacted the industry.
- Mesoblast Limited (ASX: MSB) has seen its short interest rise again to 9.5%. The key driver of this rise has been the US FDA not approving its remestemcel-L application for steroid-refractory acute graft versus host disease (SR-aGVHD). Mesoblast does have another meeting coming up with the regulator, but short sellers don't appear to believe it will come to anything.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rebound to 9.5%. Last week the department store operator's chairman bowed to pressure and retired ahead of its annual general meeting. In FY 2020, Myer posted a statutory loss of $172.4 million.
- Inghams Group Ltd (ASX: ING) has 8.7% of its shares held short, which is up slightly week on week. Short sellers don't appear confident the worst is behind this poultry company. In FY 2020 it reported a 68.2% drop in net profit to $40.1 million.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest remains flat at 8%. Concerns over rising COVID-19 cases globally are weighing on sentiment in the travel sector.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest fall to 7.9%. An oversupply of lithium and subdued demand have attracted short sellers to this battery materials producer.
- Metcash Limited (ASX: MTS) has seen its short interest rise to 7.5%. Short sellers are going after the wholesale distributor despite favourable trading conditions in the supermarkets and home improvement channels.
- CLINUVEL Pharmaceuticals Limited (ASX: CUV) has seen its short interest slide to 7.4%. Last week the biopharmaceutical company posted first quarter cash receipts of $12 million. This was an increase of 22.8% on the prior corresponding period.
