At the start of each week I like to take a look at ASIC's short position report to find out which shares have been targeted by short sellers.
I think it is worth keeping an eye on short interest levels as high levels can sometimes be a sign that something isn't quite right.
With that in mind, here are the 10 most shorted shares on the ASX this week:
- JB Hi-Fi Limited (ASX: JBH) remains the most shorted share on the Australian share market with 19.3% of its shares held short. This is a slight increase since last week and comes despite the retailer being named JB Hi-Fi as a share to buy at the recent Sohn Hearts and Mind Conference.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly week on week to 16.7%. Despite a series of positive announcements, short sellers are not giving up on this one. They may be concerned that Syrah isn't getting good prices for its graphite.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest charge higher to 15.7%. The lithium miner's shares have been strong performers this month amid an improving outlook for the metal. However, short sellers don't appear to believe these gains will last.
- Orocobre Limited (ASX: ORE) has short interest of 13.9%, down sharply week on week once again. A positive investor update from the lithium miner appears to have rattled short sellers.
- Inghams Group Ltd (ASX: ING) has 12.8% of its shares held short, down slightly since last week. Short interest remains high despite the poultry company's shares recently hitting a 52-week high.
- BWX Ltd (ASX: BWX) has seen its short interest jump to 12.5%. I suspect that short sellers are targeting the personal care products company due to concerns over the slowdown in sales of its key Sukin product and its mixed outlook.
- Metcash Limited (ASX: MTS) has 12.4% of its shares in the hands of short sellers, up slightly week on week. Increasing competition from ALDI may be weighing on investor sentiment.
- InvoCare Limited (ASX: IVC) has 12% of its shares held short, which is flat on last week. Short sellers may be concerned that this funeral company's medium-term growth won't be able to justify the premium its shares trade at.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise slightly week on week to 11.7%. The pizza chain operator's weaker than expected update at its annual general meeting appears to have caught the eye of short sellers.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 11.1%. A recent sales update from the department store operator revealed that it has had a soft start to FY 2019. I thought the surprising slowdown in online sales growth was worrying.
