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Once a 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:
- Redbubble Ltd (ASX: RBL) has become the most shorted ASX share after seeing its short interest shoot higher to 10%. A recent disappointing quarterly update from this ecommerce company appears to have given short sellers greater conviction.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall week on week to 9.9%. Short sellers appear to believe the market is overvaluing the travel agent's shares.
- Webjet Limited (ASX: WEB) has short interest of 9.2%, which is down slightly week on week. As with Flight Centre, short sellers don't appear to believe Webjet's shares deserve to trade on the multiples they are currently commanding.
- Mesoblast limited (ASX: MSB) has seen its short interest ease week on week to 8.9%. Concerns over this biotech company's balance sheet continue to weigh on its shares.
- Kogan.com Ltd (ASX: KGN) has short interest of 8.9%, which is down week on week. Although the ecommerce company reported an improved performance last week, its shares have continued to slide.
- Inghams Group Ltd (ASX: ING) has 8.2% of its shares held short, which is flat week on week. There are fears that high grain costs could be squeezing this poultry producer's margins.
- Zip Co Ltd (ASX: Z1P) has seen its short interest fall notably to 7.8%. Last week Zip released its first quarter update and revealed another record quarterly performance. This may have led to some short sellers closing positions.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 7.8% of its shares held short, which is down week on week. This defence and space company's shares are currently halted while it prepares to announce an earnings guidance downgrade and an update on an expected significant contract payment.
- Cooper Energy Ltd (ASX: COE) has 7.1% of its shares held short, which is down week on week. This energy producer's shares have come under pressure this year due to the poor performance of the Sole Gas operation.
- BHP Group Ltd (ASX: BHP) is a new entry in the top ten with 6.6% of its shares held short. Other than concerns about falling iron ore prices, it remains unclear why this mining behemoth has seen a sudden uptick in short interest.
