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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:
- Flight Centre Travel Group Ltd (ASX: FLT) has become the most shorted ASX despite its short interest falling to 10.1%. Short sellers are still holding onto their positions despite the travel agent revealing that it hopes to reach profitability again during FY 2022.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise slightly week on week to 9.8%. Rising costs and increasing competition appear to be why short sellers are targeting the buy now pay later provider. Not even takeover speculation has put them off.
- Webjet Limited (ASX: WEB) has seen its short interest fall to 9.7%. A positive trading update which revealed a significant improvement in its WebBeds performance may have spooked short sellers.
- Kogan.com Ltd (ASX: KGN) has short interest of 9.1%, which is up week on week again. Short sellers have been increasing their positions after the ecommerce company released a disappointing full year result.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.7% of its shares held short, which is down slightly week on week. Cash flow concerns have been weighing heavily on investor sentiment.
- Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is up week on week. Short sellers aren't giving up on this one despite the poultry company extending its key supply contract with Woolworths Group Ltd (ASX: WOW).
- Piedmont Lithium Inc (ASX: PLL) has short interest of 7.9%, which is down slightly since last week. Short sellers appear to have concerns over its valuation and mining license approvals.
- Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is up week on week. Short sellers continue to target this seafood company amid weaker seafood pricing.
- Resolute Mining Limited (ASX: RSG) has short interest of 7.1%, which is up week on week. Short sellers have been increasing their positions after the gold miner reported a US$220 million half year loss.
- Cooper Energy Ltd (ASX: COE) is a new entry in the top ten with 7% of its shares in the hands of short sellers. This appears to have been driven by the poor performance of its Project Sole. Its underperformance meant Cooper had to purchase gas on market to meet contract obligations.
