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.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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