These are the 10 most shorted ASX shares

Clinuvel Pharmaceuticals Limited (ASX:CUV) and Orocobre Limited (ASX:ORE) shares are amongst the most shorted shares on the ASX right now…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

At the start of each week I like to look at ASIC's short position report in order to find out which shares are being targeted by short sellers.

This is because I believe it is 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:

  • Galaxy Resources Limited (ASX: GXY) is once again the most shorted share on the ASX by some distance. This is despite its short interest falling meaningfully to 18.1%. Short sellers have been targeting Galaxy due to an oversupply of lithium.
  • Speedcast International Ltd (ASX: SDA) has short interest of 13.2%, which is flat week on week. The communications satellite technology provider's shares have been suspended since the start of February and are due to return today. However, the company appears to be struggling to arrange financing, which could mean another extension will be requested.
  • Syrah Resources Ltd (ASX: SYR) has seen its short interest slide to 13.1%. Last week Syrah announced the suspension of its Balama operation due to the coronavirus outbreak. This could be a blessing in disguise given the oversupply of graphite in the market.
  • Orocobre Limited (ASX: ORE) has seen its short interest drop to 13%. Short sellers have been going after this lithium miner due to falling prices of the battery making ingredient.
  • Inghams Group Ltd (ASX: ING) has short interest of 11.2%, which is down week on week once again. Short sellers may believe the poultry company's shares have bottomed after its recent share price weakness. Especially given how more people are eating at home.
  • New Century Resources Ltd (ASX: NCZ) has seen its short interest remain flat at 10.1%. The base metal producer's shares have fallen heavily over the last 12 months and short sellers appear to believe they can go further.
  • JB Hi-Fi Limited (ASX: JBH) is back in the top ten with short interest rising to 9.7%. Short sellers may believe the retailer's performance could be impacted by the coronavirus outbreak.
  • Pilbara Mineral Ltd (ASX: PLS) has short interest of 9.5%, which is down slightly since last week. Pilbara Minerals is another lithium miner which has fallen heavily over the last 12 months due to weakening lithium prices.
  • Metcash Limited (ASX: MTS) has short interest of 9.4%, which is down sharply week on week. Short sellers appear to have been closing positions due to the panic buying which the wholesale distributor is likely to be benefiting greatly from.
  • Clinuvel Pharmaceuticals Limited (ASX: CUV) has entered the top ten with short interest of 9.2%. Investors may believe the biopharmaceutical company's shares are overvalued at the current level. Even after falling over 50% from their 52-week high, its shares are changing hands at 52x earnings.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Broker Notes

Guess which ASX 300 stock was downgraded to sell today

Bell Potter has become bearish on this stock. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a gas worker with hard hat and high visibility vest stands cross armed and smiling in front of an elaborate steel structured gas plant.
Share Market News

Morgans names 2 ASX energy shares to buy now

These shares could be top picks for investors with a high tolerance for risk.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Broker Notes

Is the ResMed share price still cheap? What the numbers say

Let's see what analysts are saying about this blue chip as it nears a 52-week high.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Broker Notes

What does Macquarie think REA shares are worth?

Top broker Macquarie has reviewed its rating and price target on REA shares.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Woman checking out new TVs.
Broker Notes

Does JP Morgan think JB Hi-Fi shares can keep rising?

The retailer is up 16% for the year to date.

Read more »