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.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and 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.