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 its long run as the most shorted ASX share with short interest rising to 14.5%. The online travel agent's shares are being targeting due to concerns over its valuation and the challenging short term outlook.
- Tassal Group Limited (ASX: TGR) has seen its short interest rebound week on week to 12.2%. This appears to have been driven by fears over tuna prices and speculation that China could slap duties on Australian seafood.
- Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. This communications satellite technology provider's shares have been suspended for around a year while it undertakes a recapitalisation.
- Mesoblast limited (ASX: MSB) has seen its short interest fall to 9.15%. A disastrous run of underwhelming trial results has weighed very heavily on this biotech company's shares in recent months.
- Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is up slightly week on week. This poultry company has been tipped to underperform again in FY 2021 due to high input costs and an unfavourable sales mix caused by COVID-19.
- AVITA Medical Inc (ASX: AVH) has seen its short interest rise week on week to 8.4%. Concerns that COVID-19 headwinds will stifle this medical device company's growth again in FY 2021 could be the reason for this high level of short interest.
- Western Areas Ltd (ASX: WSA) has entered the top ten with short interest of 7.8%. A disappointing first half production update and issues at its Flying Fox operation have been weighing on investor sentiment.
- Northern Star Resources Ltd (ASX: NST) is another new entry in the top ten with 7.7% of its shares hold short. The gold miner has just completed its merger with Saracen Mineral. It appears as though some short sellers aren't convinced by the deal.
- Metcash Limited (ASX: MTS) has short interest of 7.4%, which is flat week on week. This wholesale distributor has delivered strong growth so far in FY 2021. Some short sellers don't seem confident the strong form will last.
- Myer Holdings Ltd (ASX: MYR) is back in the top ten with 7.3% of its shares held short. This could be due to concerns that the pandemic could undo the progress it has made with its turnaround plan.
