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 despite its short interest falling week on week to 10.2%. Short sellers aren’t giving up on this one despite the outlook for the travel market improving greatly in recent weeks.
- Webjet Limited (ASX: WEB) has short interest of 9.3%, which is up slightly week on week. Once again, although the travel market outlook is improving greatly, short sellers are holding firm with their bearish views.
- Kogan.com Ltd (ASX: KGN) has short interest of 9.2%, which down week on week. Investors appear concerned with this ecommerce company’s inventory position and global supply chain issues.
- Mesoblast limited (ASX: MSB) has seen its short interest rise week on week to 9%. Short sellers appear to be targeting this biotech company due to balance sheet concerns.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.7% of its shares held short, which is up slightly week on week. This defence and space company’s shares are under fire from short sellers due to accounting and cash generation concerns.
- Zip Co Ltd (ASX: Z1P) has seen its short interest ease again to 8.7%. This morning Zip released its first quarter update and revealed another record quarterly performance. Fortunately for short sellers, its shares are falling despite its strong growth.
- Redbubble Ltd (ASX: RBL) has seen its short interest rise again to 8.4%. Short sellers will have been celebrating last week after a disappointing quarterly update led to this ecommerce company’s shares crashing lower.
- Inghams Group Ltd (ASX: ING) has 8.2% of its shares held short, which is up week on week. This may be due to concerns that high grain costs could be squeezing the poultry producer’s margins.
- Cooper Energy Ltd (ASX: COE) has 7.4% of its shares held short, which is down week on week. Short sellers have been targeting the energy producer due to issues at its Project Sole operation.
- Tassal Group Limited (ASX: TGR) has short interest of 7.1%, which is up slightly week on week. Short sellers aren’t giving up on the salmon producer despite a recent improvement in global salmon prices.