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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:
- Kogan.com Ltd (ASX: KGN) remains the most shorted share on the Australian share market by some distance after its short interest rose to 12.2%. Short sellers have been going after this ecommerce company after it reported significant inventory issues which have been weighing heavily on its recent performance.
- Resolute Mining Limited (ASX: RSG) has seen its short interest remain flat at 10.3%. This gold miner's shares have come under pressure this year due to regulatory issues at its Bibiani operation in Ghana and its underwhelming production performance and guidance.
- Webjet Limited (ASX: WEB) has seen its short interest hold firm at 10.2%. Short sellers appear to believe the online travel agent's shares are overvalued at the current level. Particularly given the stuttering travel market recovery due to COVID breakouts.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 9.6%. This online furniture and homewares retailer disappointed the market recently by announcing that it would sacrifice profit growth in order to invest heavily in its future sales growth.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.1% of its shares held short, which is up sharply week on week. This may be due to supply chain concerns which could prevent the communications, defence, and space company from delivering on its sizeable sales pipeline.
- Tassal Group Limited (ASX: TGR) has short interest of 9.1%, which is down week on week. Weak salmon prices could be partly to blame for the high level of short interest.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease notably to 8.5%. Short sellers may have been closing positions after a reasonably sharp pullback in the Flight Centre share price over the last two and a half months.
- Megaport Ltd (ASX: MP1) has short interest of 8.1%, which is down slightly week on week. Some short sellers appear to believe the Network as a Service provider's shares are overvalued at the current level.
- Inghams Group Ltd (ASX: ING) has 7.9% of its shares held short, which is down slightly week on week. Short sellers may be regretting this one. The Inghams share price has been charging higher recently after providing earnings guidance well ahead of the market's expectations.
- Zip Co Ltd (ASX: Z1P) has short interest of 7.3%, which is down week on week. This buy now pay later provider's shares have more the halved in value since the middle of February. Valuation concerns appear to be weighing on its shares.
