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) continues to be the most shorted share on the ASX despite another reduction in short interest to 13.2%. Short sellers will be disappointed to learn that COVID-19 vaccine optimism has led to Webjet's shares surging 50% higher month to date.
- Western Areas Ltd (ASX: WSA) has seen its short interest jump to 11.3%. Short sellers have been increasing their positions in this nickel producer following production issues at its Flying Fox operation.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 9.7%. Last week US department store operator, Macy's, reported a 20% decline in same store sales. Investors may be concerned that Myer will be experiencing similarly tough trading conditions.
- Speedcast International Ltd (ASX: SDA) has short interest of 9.4%. The communications satellite technology provider's shares are still suspended while it undertakes a recapitalisation.
- InvoCare Limited (ASX: IVC) has short interest of 9.2%, which is down week on week. Short sellers may have been closing positions after the funerals company's shares pushed higher following the announcement of acquisitions in the pet cremation industry.
- Flight Centre Travel Group Ltd (ASX: FLT) is back in the top ten with short interest of 8.6%. Although the travel market outlook is improving greatly, some short sellers aren't giving up on this travel agent.
- Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is down week on week. Short sellers continue to close positions after the poultry company revealed an improvement in its performance in FY 2021.
- Mesoblast Limited (ASX: MSB) has seen its short interest fall to 8.1%. Unfortunately for short sellers, the Mesoblast share price surged higher last week after announcing a major deal with pharma giant Novartis.
- A2 Milk Company Ltd (ASX: A2M) has seen its short interest rise slightly to 7.8%. Weakness in the daigou channel is weighing heavily on the infant formula company's performance and has many suggesting it could fail to achieve its guidance.
- Metcash Limited (ASX: MTS) is back in the top ten with 7.8% of its shares held short. It remains unclear why short sellers are targeting this wholesale distributor.
