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:
- Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest remained flat week on week at 12.1%. Short sellers will have been disappointed to see Flight Centre's shares jump today after the US announced the reopening of its borders.
- Kogan.com Ltd (ASX: KGN) has short interest of 10.7%, which is up notably week on week. Short sellers appear to be targeting this ecommerce company due to inventory issues and its slowing sales growth.
- Redbubble Ltd (ASX: RBL) has short interest of 10.4%, which is up slightly since last week. Short sellers have been increasing their positions in this ecommerce company since the release of a disappointing quarterly update.
- Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up slightly week on week. Valuation concerns appear to be the reason for this high level of short interest.
- Zip Co Ltd (ASX: Z1P) has seen its short interest jump to 8.9%. Short sellers have increased their positions despite the buy now pay later provider delivering a record monthly performance in October.
- Mesoblast limited (ASX: MSB) has short interest of 8.8%, which is down slightly week on week. Concerns that this biotech company will have to raise funds soon could be weighing on sentiment.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.6% of its shares held short, which is up week on week once again. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
- Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is flat week on week. Last week this poultry producer's shares sank after revealing that higher grain costs were impacting its financial performance.
- Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week once again. Short sellers have been targeting this energy company due to concerns over the Sole Gas operation.
- BHP Group Ltd (ASX: BHP) has seen its short interest remain flat week on week at 6.9%. The softening iron ore price could be behind this high level of short interest.
