Every Monday I like to look at ASIC's short position report to find out which shares are being targeted by short sellers. I do this because 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:
- Syrah Resources Ltd (ASX: SYR) continues to be the most shorted share on the ASX with short interest of 17.3%, which is up again week on week. Concerns over costs and prices have weighed on the graphite producer's shares this year.
- Inghams Group Ltd (ASX: ING) has 16.4% of its shares held short, which is up week on week again. Last week the poultry producer's shares fell heavily after it released its result and revealed that the droughts have led to higher input costs.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest increase slightly to 15.1%. Last week the lithium miner announced the completion of its asset sale to POSCO, boosting its cash balance by US$271.6 million. But short sellers continue to remain negative due to weakening lithium prices.
- JB Hi-Fi Limited (ASX: JBH) has seen its short interest rise to 12.9%. Last week rival Harvey Norman Limited (ASX: HVN) released its results and provided a trading update which revealed that Australian sales were sliding.
- Orocobre Limited (ASX: ORE) has short interest of 12.7%, down week on week. Last month the lithium miner's shares tumbled lower after its half year results and quarterly pricing guidance disappointed.
- InvoCare Limited (ASX: IVC) has 11.6% of its shares held short, down materially week on week. Much to the dismay of short sellers, the funerals company's shares hit a 52-week high last week after its latest update revealed that trading conditions had improved.
- Metcash Limited (ASX: MTS) has 11.6% of its shares in the hands of short sellers, which is down notably on last week's numbers. Short sellers may be targeting Metcash due to concerns that trading conditions remain tough in the supermarket industry.
- BWX Ltd (ASX: BWX) has seen its short interest slide again to 11.2%. The personal care products company's shares rocketed higher last month after management provided a positive outlook for the second half.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest remain flat at 11.1%. Short sellers may be expecting the department store operator to release another disappointing update when it announces its half year results this month.
- Speedcast International Ltd (ASX: SDA) has entered the top 10 with short interest of 10.4%. Short sellers may regret this one, though. A stronger than expected full year result last week led to its shares rocketing higher.
