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 back as the most shorted ASX share after its short interest rose to 9.9%. Concerns over its valuation and a longer than expected recovery in the tourism market appear to be the reason for the poor sentiment.
- Tassal Group Limited (ASX: TGR) isn't far behind with short interest of 9.8%, which is down slightly week on week. Short sellers have been going after this seafood company due to weak salmon prices and Australia-China trade war concerns.
- Resolute Mining Limited (ASX: RSG) has seen its short interest ease week on week to 9.7%. This gold miner has seen its shares crash lower this year due to weak production, disappointing guidance, and issues at its Bibiani operation in Ghana.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 9.1%, which is down slightly week on week. As with Webjet, this may be driven by concerns over its valuation and the stalling travel market recovery.
- Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is down week on week. This poultry company has recently lost its CEO and is understood to be negotiating a major contract with Woolworths Group Ltd (ASX: WOW).
- Kogan.com Ltd (ASX: KGN) is a new entry into the top ten with short interest of 7.9%. Inventory issues and its slowing growth could be the reason short sellers are targeting Kogan.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.5%. Short sellers have been increasing their positions after the online furniture and homewares retailer announced plans to invest materially in its growth at the expense of margins.
- Metcash Limited (ASX: MTS) has seen its short interest rise slightly to 7.4%. This appears to have been driven by concerns over a potential supermarket price war.
- Zip Co Ltd (ASX: Z1P) has short interest of 7.3%, which is up slightly week on week. Valuation concerns and execution risks relating to its international expansion could be weighing on sentiment.
- Megaport Ltd (ASX: MP1) has short interest of 7.2%, which is up again week on week. Unfortunately for short sellers, the Megaport share price was the best performer on the ASX 200 in April with a 30% gain.
