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 rose to 12.3%. This high level of short interest appears to be due to valuation concerns and rising COVID cases in Europe.
- Kogan.com Ltd (ASX: KGN) has seen its short interest rise week on week again to 11.5%. Short sellers don't appear to believe this ecommerce company's performance is improving as quickly as hoped.
- Redbubble Ltd (ASX: RBL) has short interest of 10.5%, which is up slightly week on week. Short sellers have been increasing their positions in this ecommerce company since the release of disappointing quarterly update.
- Webjet Limited (ASX: WEB) has short interest of 9.3%, which is up meaningfully week on week. Short sellers seem confident this online travel agent's half year results this week will disappoint.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 9.2%. Reports of rising fraud in the BNPL industry and increasing competition could be weighing on investor sentiment.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.9% of its shares held short, which is up week on week again. This defence and space company recently downgraded its earnings guidance.
- Mesoblast limited (ASX: MSB) has short interest of 8.7%, which is down week on week. This biotech company's precarious financial position is likely to be weighing on sentiment.
- Cooper Energy Ltd (ASX: COE) has 8.5% of its shares held short, which is up week on week again. A disappointing performance from its Sole Gas operation appears to be behind this high level of short interest.
- Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. This appears to be due to concerns that this poultry producer could be negatively impacted by higher grain costs.
- BHP Group Ltd (ASX: BHP) is back in the top ten with 7.1% of its shares held short. This appears to have been driven by weakness in iron ore prices.
