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:
- Tassal Group Limited (ASX: TGR) has seen its short interest rise to 13% to become the most shorted ASX share. Weak prices and concerns that China could slap duties on Australian seafood exports appear to be weighing on investor sentiment.
- Webjet Limited (ASX: WEB) has seen its short interest ease to 12%. With vaccines rolling out across the country, short sellers may believe the worst is now behind this online travel agent.
- Speedcast International Ltd (ASX: SDA) still has short interest of 9.3%. This communications satellite technology provider’s shares have been suspended for over 12 months while it undertakes a recapitalisation after its debts spiralled out of control.
- Mesoblast limited (ASX: MSB) has seen its short interest remain flat at 8.8%. This biotech company’s shares are currently in a trading halt whilst it seeks to raise money to fund its operations.
- Inghams Group Ltd (ASX: ING) has 8.7% of its shares held short, which is up slightly week on week once again. Last month this poultry producer’s shares hit a 52-week high, much to the dismay of short sellers. This followed a solid half year update, which revealed a 28.4% increase in underlying profit.
- AVITA Medical Inc (ASX: AVH) has seen its short interest rise week on week to 8.1%. Last month the medical device company reported a 56% lift in half year revenue to $10.2 million but a loss of $15.8 million. Disappointingly, the latter was 13% larger than the loss it recorded in the prior corresponding period.
- Resolute Mining Limited (ASX: RSG) has seen its short interest rise week on week to 8.3%. Investors have been selling the gold miner’s shares due to industrial disruption at its Syama operation. This has led to management forecasting further production declines and cost increases in FY 2021.
- Service Stream Limited (ASX: SSM) has short interest of 7.4%, which is up slightly since last week. Short sellers will have been celebrating at the weekend after the essential network services company’s shares lost over a third of their value following the release of a disappointing half year result.
- Metcash Limited (ASX: MTS) is back in the top ten with short interest of 7.2%. Short sellers are not giving up on this wholesaler despite its shares trading close to a 52-week high.
- Flight Centre Travel Group Ltd (ASX: FLT) is also back in the top ten with short interest of 7.2%. Last week the travel agent giant posted an underlying loss of $247 million for the first half.
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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, Flight Centre Travel Group 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.