These are the 10 most shorted shares on the ASX

AVITA Medical Inc (ASX:AVH) and Webjet Limited (ASX:WEB) shares remain among the most shorted shares on the ASX this week…

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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) 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.

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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 Webjet Ltd. The Motley Fool Australia has recommended Avita Medical 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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