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) remains the most shorted share on the ASX with short interest of 13.1%. This was up week on week from 12.5%. Last week the online travel agent released its half year results and reported an 89% decline in total transaction value to $267 million and a $40.1 million loss.
- Tassal Group Limited (ASX: TGR) has seen its short interest rise to 12.3%. Short sellers appear to be targeting the seafood producer due to concerns that China could slap duties on Australian seafood exports.
- Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. This communications satellite technology provider’s shares have been suspended for over a year while it undertakes a recapitalisation.
- Mesoblast limited (ASX: MSB) has seen its short interest rebound week on week to 8.8%. This biotech company’s shares have come under pressure in recent months following a series of disappointing trial results.
- Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is flat week on week once again. Much to the dismay of short sellers, this poultry company’s share pushed higher last week after a solid half year update. Inghams posted a 28.4% increase in underlying profit.
- AVITA Medical Inc (ASX: AVH) has seen its short interest rise week on week to 8%. Last week the medical device company reported a 56% in half year revenue to $10.2 million but a loss of $15.8 million. The latter was 13% larger than the prior corresponding period.
- Service Stream Limited (ASX: SSM) has short interest of 7.3%. The essential network services company’s shares have come under pressure this year amid a series of mixed contract updates.
- Resolute Mining Limited (ASX: RSG) has entered the top ten with short interest of 7.3%. This gold miner’s shares are trading close to a 52-week low. Investors have been selling its shares due to industrial disruption at its Syama operation. This recently led to the company providing soft guidance for 2021.
- Western Areas Ltd (ASX: WSA) has seen its short interest fall to 7.2%. Short sellers have been going after the nickel producer due to production issues at its Flying Fox operation.
- Myer Holdings Ltd (ASX: MYR) has 7% of its shares held short, which is down slightly week on week once again. The market appears concerned that COVID-19 is accelerating the structural pressures the department store operator is facing.