Every Monday I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
This is because I believe it is well 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:
- Webjet Limited (ASX: WEB) remains the most shorted share on the Australian share market despite its short interest sliding to 14.6%. Short sellers won't have enjoyed last week. The online travel agent's shares rocketed higher following news of a promising COVID-19 vaccine.
- InvoCare Limited (ASX: IVC) has short interest of 9.5%, which is down slightly week on week once again. There are concerns that this funerals company is losing market share to competitors.
- Speedcast International Ltd (ASX: SDA) still has short interest of 9.4%. This communications satellite technology provider's shares remain suspended whilst it undertakes a recapitalisation.
- Western Areas Ltd (ASX: WSA) has seen its short interest rise again to 9.2%. Short sellers have been going after the nickel producer due to production issues at its Flying Fox operation.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest fall to 9.2%. In FY 2020, this department store operator posted a statutory loss of $172.4 million. Short sellers don't appear to be expecting a big improvement in FY 2021.
- Mesoblast Limited (ASX: MSB) has seen its short interest rise again to 9.1%. The biotech company's shares have come under pressure after the US FDA decided against approving its remestemcel-L product last month.
- Inghams Group Ltd (ASX: ING) has 8.7% of its shares held short, which is down slightly week on week. Short sellers have been closing positions after the poultry company revealed an improvement in its performance in FY 2021.
- A2 Milk Company Ltd (ASX: A2M) has re-entered the top ten with short interest of 7.6%. Weakness in the daigou channel is weighing heavily on the infant formula company's performance this year.
- Galaxy Resources Limited (ASX: GXY) has seen its short interest slide to 7.5%. Galaxy and other lithium miners have fallen heavily this year because of a collapse in lithium prices due to oversupply and lower demand.
- Metcash Limited (ASX: MTS) is back in the top ten with 7.5% of its shares held short. Given the favourable trading conditions its businesses are experiencing, it remains unclear why short sellers are going after Metcash.
