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) remains the most shorted ASX share after its short interest rose week on week to 11.1%. Short sellers continue to build up their positions despite the travel agent expecting to reach profitability again during FY 2022.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise strongly to 10.3%. Short sellers appear to be targeting this buy now pay later provider due to increasing competition and ballooning costs.
- Kogan.com Ltd (ASX: KGN) has short interest of 9.9%, which is up week on week. Short sellers aren't giving up on this ecommerce company. They appear to believe it could still be struggling with inventory issues.
- Webjet Limited (ASX: WEB) has short interest of 9.9%, which is up week on week. Although the online travel agent recently revealed a significant improvement in the performance of its WebBeds business, short sellers aren't closing positions.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.1% of its shares held short, which is up week on week. Short sellers are reportedly going after this defence and space company due to accounting and cash generation concerns.
- Mesoblast limited (ASX: MSB) has seen its short interest rise week on week once again to 8.6%. Fears that this biotech company may have to raise more capital to fund its operations are weighing on sentiment.
- Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is up strongly week on week. Changes in consumer habits and rising grain costs may be weighing on its shares.
- Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week. The underperformance of Project Sole has been weighing on investor sentiment.
- Tassal Group Limited (ASX: TGR) is back in the top ten with short interest of 7.6%. Weakness in salmon prices continues to hold back this seafood company's shares. According to the Nasdaq Salmon index, prices have fallen 15% over the last 12 weeks.
- Redbubble Ltd (ASX: RBL) has seen its short interest fall to 7.5%. Short sellers may have concerns over a deceleration in its growth during the fourth quarter of FY 2021.
