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) is back as the most shorted ASX share after its short interest rebounded week on week to 11.5%. This ecommerce company has been struggling with inventory issues. Short sellers don’t appear to believe they are going away despite recent lockdowns potentially boosting sales.
- Webjet Limited (ASX: WEB) has seen its short interest ease to 10.6%. Lockdowns and border restrictions continue to weigh heavily on this online travel agent’s shares.
- Inghams Group Ltd (ASX: ING) has 8.8% of its shares held short, which is flat week on week once again. Concerns over an upcoming major contract renewal with a supermarket giant continue to weigh on sentiment.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest slide to 8.7%. This appears to have been driven by fears that the travel market recovery could take longer than expected because of the Delta strain of COVID-19.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.1% of its shares held short, which is flat week on week. Short sellers may be targeting Electro Optic Systems due to supply chain and cash flow concerns.
- Zip Co Ltd (ASX: Z1P) has short interest of 8%, which is flat week on week. Valuation and competition concerns could be why short sellers have taken short positions in this buy now pay later provider.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.8%. This ecommerce company has been targeted by short sellers since it announced plans to sacrifice margins in the hope of growing its market share.
- Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is up slightly week on week. Although salmon prices have been tipped to rebound, some short sellers aren’t in a rush to close positions.
- Resolute Mining Limited (ASX: RSG) has seen its short interest fall to 7.7%. This gold miner’s shares have come under significant pressure over the last 12 months due to operational issues and production downgrades.
- A2 Milk Company Ltd (ASX: A2M) is back in the top ten with short interest of 6.8%. Concerns over weakness in the daigou channel and the growing popularity of Chinese infant formula brands has been weighing on its shares.