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 rise to 15.9%, making the online travel agent the most shorted ASX shares by some distance. This high level of short interest appears to be due to COVID-19 and valuation concerns.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise again to 9.8%. Short sellers seem to be expecting another tough year for the department store operator this year. This follows a statutory loss of $172.4 million in FY 2020.
- InvoCare Limited (ASX: IVC) has short interest of 9.6%, which is down slightly week on week once again. This funerals company’s performance has been impacted greatly this year because of COVID-related restrictions.
- Speedcast International Ltd (ASX: SDA) has short interest of 9.4%. This communications satellite technology provider’s shares have been suspended since February whilst it undertakes a recapitalisation. Last week it announced the sale of its Speedcast Managed Services business to the NBN.
- Inghams Group Ltd (ASX: ING) has 8.8% of its shares held short, which is up slightly week on week. Short sellers may regret this one. Last week the poultry company’s shares surged higher after revealing an improvement in its performance.
- Mesoblast Limited (ASX: MSB) has seen its short interest slide to 8.8%. Short sellers may be locking in their gains ahead of the company’s upcoming meeting with the FDA. This is in response to the regulator not approving its remestemcel-L product last month.
- Western Areas Ltd (ASX: WSA) has entered the top 10 with short interest of 8.7%. The nickel producer’s shares have come under pressure recently due to production issues at its Flying Fox operation.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise slightly to 8.2%. Short sellers appear to believe that rising COVID-19 cases globally could weigh on the travel sector for longer than expected.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest rebound to 8.1%. This appears to have been driven by concerns over an oversupply of lithium and subdued demand.
- Whitehaven Coal Ltd (ASX: WHC) is another new entry in the top 10 with short interest of 7.7%. Traders have been shorting this coal miner amid reports that China is banning purchases of Australian coal.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and InvoCare 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.
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