At the start of each week 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 after its short interest rose to 15.3%. Concerns that the recovery of travel markets may take longer than hoped appears to be weighing on its shares.
- Tassal Group Limited (ASX: TGR) has seen its short interest jump to 11.4%. This salmon producer has come under pressure amid concerns that China could put tariffs on Australian salmon exports.
- Mesoblast limited (ASX: MSB) has seen its short interest surge to 9.6%. This biotech company's shares crashed lower this month after a series of disappointing updates. One of which calls into question a potentially lucrative deal with pharma giant Novartis.
- Speedcast International Ltd (ASX: SDA) still has short interest of 9.3%. The communications satellite technology provider's shares have been suspended for almost the entire year as it undertakes a recapitalisation.
- Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is up week on week. It appears as though short sellers aren't convinced the worst is over for the poultry producer after a disappointing performance in FY 2020.
- InvoCare Limited (ASX: IVC) has short interest of 8.3%, which is down week on week. Short sellers have been targeting this funeral company amid concerns that it is losing market share to rivals.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest fall to 8.3%. This department store operator's shares have been hammered this year after the pandemic disrupted its recovery plans.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest reduce to 8%. A recent COVID outbreak in New South Wales and a particularly virulent strain in the UK have been weighing on this travel company's shares recently.
- Western Areas Ltd (ASX: WSA) has seen its short interest reduce to 7.8%. Short sellers appear to be closing positions after the nickel producer's shares rebounded following a guidance downgrade-related crash.
- Zip Co Ltd (ASX: Z1P) has entered the top ten with short interest of 7.7%. This may be due to concerns that the company's US buy now pay later business will be impacted negatively by increasing competition from the likes of Shopify and PayPal.
