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.
The reason for this is that 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 ASX despite a sharp decline in short interest. The retailer currently has 17.8% of its shares held short, compared to 19.2% last week. Short sellers have been targeting JB Hi-Fi due to concerns that online competition and a cooling housing market are negatively impacting its businesses.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly week on week to 16.8%. Despite the rise in short interest, the graphite miner's shares were amongst the best performers on the market last week with a 9% gain.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest push higher again to 16.7%. Concerns over the potential oversupply of lithium appears to have attracted short sellers to the lithium miners.
- Orocobre Limited (ASX: ORE) has short interest of 14%, up slightly week on week. As with Galaxy, short sellers have been targeting Orocobre due to concerns that lithium prices could crumble in the coming years due to an oversupply of the battery making ingredient.
- BWX Ltd (ASX: BWX) has seen its short interest fall slightly to 13.4%. This personal care products company has come onto the radar of short sellers in recent months after it reported a sudden slowdown in the sales of its key Sukin products.
- Inghams Group Ltd (ASX: ING) has 12.9% of its shares held short, down slightly since last week. Despite being one of the most shorted shares on the ASX for a number of months, the poultry company's shares are up over 26% this year and were recently trading at an all-time high.
- Metcash Limited (ASX: MTS) has 12.9% of its shares in the hands of short sellers, which is flat week on week. Unlike with Inghams, short sellers have done well with this one. The wholesale distributor's shares are down 25% year to date.
- InvoCare Limited (ASX: IVC) has 11.9% of its shares held short, up slightly since last week. Short sellers appear to be targeting the funerals company due to its weak earnings outlook and relatively high PE.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest rise to 11.8%. Doubts over the department store operator's turnaround plans are largely to blame for the high levels of short interest.
- NEXTDC Ltd (ASX: NXT) has 11.7% of its shares held short, up week on week. Short sellers may be targeting the data centre operator due to the sky high multiples that its shares are trading on.
