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) is the most shorted ASX share despite experiencing a small reduction in short interest to 10.4%. Concerns over a third wave of COVID-19 in Europe and the floods in NSW and Queensland could be weighing on its shares.
- Tassal Group Limited (ASX: TGR) has seen its short interest slide to 10.3%. Weak salmon prices and concerns over the Australia-China trade war have hit investor sentiment.
- Inghams Group Ltd (ASX: ING) has 8.25% of its shares held short, which is up week on week. This morning the poultry company announced the surprise exit of its CEO with immediate effect.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 8.2%. As with Webjet, this appears to have been driven by rising COVID-19 cases across the world despite the rollout of vaccines.
- Metcash Limited (ASX: MTS) has seen its short interest rise to 7.2%. It appears as though some investors aren't convinced by the wholesale distributor's recently announced growth strategy. This may be due to its notably higher than expected capex plans.
- Resolute Mining Limited (ASX: RSG) has seen its short interest reduce week on week to 6.9%. Short sellers will have been celebrating last week after the gold miner's shares crashed lower. This was due to news that the Ghanaian government has terminated its Bibiani mining license.
- JB Hi-Fi Limited (ASX: JBH) has entered the top ten with short interest of 6.8%. Short sellers may believe JB Hi-Fi's shares have peaked after a very strong gain over the last 12 months.
- InvoCare Limited (ASX: IVC) has 6.6% of its shares held short, which is down slightly week on week. Allegations of anti-competitive conduct in the funeral sector and speculation the company is losing market share could be behind this high level of short interest.
- A2 Milk Company Ltd (ASX: A2M) has entered the top ten with short interest of 6.1%. There are concerns that weakness in the daigou channel and a resurgence in Chinese infant formula brands could weigh heavily on a2 Milk's performance for some time to come.
- Alkane Resources Limited (ASX: ALK) has joined the top ten with 5.9%. This gold miner's shares are down 28% since the start of the year. However, short sellers appear to believe they can still go lower. Though, it remains unclear why they are targeting the company.
