Here are the 10 most shorted shares on the ASX

A2 Milk Company Ltd (ASX:A2M) and Mesoblast limited (ASX:MSB) shares are among the most shorted shares on the ASX…

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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 ASX share with short interest of 14.2%. This was down from 14.9% a week earlier. Short sellers have been targeting the online travel agent’s shares on the belief they are expensive given the challenging near term trading conditions.
  • Tassal Group Limited (ASX: TGR) has seen its short interest ease week on week to 11.8%. Concerns that China could slap duties on Australian seafood has been weighing on this salmon producer’s shares.
  • Mesoblast limited (ASX: MSB) has seen its short interest remain flat at 10.3%. This biotech company has gained the attention of short sellers after a series of very disappointing trial updates.
  • Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. The communications satellite technology provider’s shares remain suspended while it undertakes a recapitalisation.
  • Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week once again. Short sellers appear to expect an unfavourable sales mix caused by COVID-19 to weigh on this poultry producer’s performance in FY 2021.
  • AVITA Medical Inc (ASX: AVH) has seen its short interest rise week on week to 8.3%. This appears to have been driven by concerns that COVID-19 headwinds will stifle the medical device company’s growth again in FY 2021 after a poor performance in FY 2020.
  • InvoCare Limited (ASX: IVC) has short interest of 7.9%, which is down week on week again. This funerals company has been tipped to lose market share in FY 2021 due to increasing competition and COVID-19 headwinds.
  • A2 Milk Company Ltd (ASX: A2M) has seen its short interest rise slightly to 7.9%. Concerns that weakness in the key daigou channel could persist for even longer than expected appears to be weighing heavily on sentiment.
  • Metcash Limited (ASX: MTS) has short interest of 7.4%, which is up slightly week on week. Although the wholesale distributor has delivered strong growth so far in FY 2021, short sellers aren’t giving up on it.
  • Service Stream Limited (ASX: SSM) has seen its short interest remain flat at 7.3%. Unfortunately for short sellers, this essential network services company’s shares surged higher last week after announcing a major contract win.

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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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk and Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited, InvoCare Limited, and Service Stream 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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