Every Monday 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) continues its run as the most shorted share on the Australian share market with short interest increasing to 19.6%. Short sellers appear to be betting that online competition and a cooling housing market are likely to have a negative impact on its performance.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise week on week to 17%. Short sellers were dealt a blow this morning when Syrah's shares pushed higher following a positive production update out of the graphite miner.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest push higher again to 16.1%. Short sellers have returned to the lithium miner after Moody's predicted sharp declines in lithium prices.
- Orocobre Limited (ASX: ORE) has short interest of 14%, up slightly week on week. As with Galaxy, this lithium miner is being targeted largely because of fears that prices will crumble in the coming years.
- BWX Ltd (ASX: BWX) has seen its short interest jump again to 13.5%. The slowdown in sales of its key Sukin product range appears to have caught the eye of short sellers.
- Inghams Group Ltd (ASX: ING) has 13% of its shares held short, up slightly since last week. Short interest remains high on the belief that increasing input costs are going to impact this poultry producer's profits.
- Metcash Limited (ASX: MTS) has 12.5% of its shares in the hands of short sellers, up slightly week on week. This morning the wholesale distributor's shares sank lower after its half year result underwhelmed.
- InvoCare Limited (ASX: IVC) has 12.1% of its shares held short, up slightly since last week. The funeral company has come under pressure this year due to its slower than expected earnings growth.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 11.3%. Weak sales figures for the first quarter of FY 2019 is likely to have encouraged short sellers to increase their bets against the struggling department store operator.
- NEXTDC Ltd (ASX: NXT) has entered the top ten with 11.1% of its shares held short. The data centre operator's shares are trading on a nosebleed earnings multiple. Short sellers may not be convinced its growth will justify the premium.
