At the start of each week 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) continues to be the most shorted ASX share with short interest of 14.2%. This was down from 14.9% a week earlier. Short sellers have been targeting the online travel agent's shares on the belief they are expensive given the challenging near term trading conditions.
- Tassal Group Limited (ASX: TGR) has seen its short interest ease week on week to 11.8%. Concerns that China could slap duties on Australian seafood has been weighing on this salmon producer's shares.
- Mesoblast limited (ASX: MSB) has seen its short interest remain flat at 10.3%. This biotech company has gained the attention of short sellers after a series of very disappointing trial updates.
- Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. The communications satellite technology provider's shares remain suspended while it undertakes a recapitalisation.
- Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week once again. Short sellers appear to expect an unfavourable sales mix caused by COVID-19 to weigh on this poultry producer's performance in FY 2021.
- AVITA Medical Inc (ASX: AVH) has seen its short interest rise week on week to 8.3%. This appears to have been driven by concerns that COVID-19 headwinds will stifle the medical device company's growth again in FY 2021 after a poor performance in FY 2020.
- InvoCare Limited (ASX: IVC) has short interest of 7.9%, which is down week on week again. This funerals company has been tipped to lose market share in FY 2021 due to increasing competition and COVID-19 headwinds.
- A2 Milk Company Ltd (ASX: A2M) has seen its short interest rise slightly to 7.9%. Concerns that weakness in the key daigou channel could persist for even longer than expected appears to be weighing heavily on sentiment.
- Metcash Limited (ASX: MTS) has short interest of 7.4%, which is up slightly week on week. Although the wholesale distributor has delivered strong growth so far in FY 2021, short sellers aren't giving up on it.
- Service Stream Limited (ASX: SSM) has seen its short interest remain flat at 7.3%. Unfortunately for short sellers, this essential network services company's shares surged higher last week after announcing a major contract win.
