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) remains the most shorted share on the ASX but only just. This week the online travel agent's short interest has fallen by 200 basis points to 12.5%. Some short sellers may have been locking in returns after a recent and sharp pullback in the Webjet share price.
- Tassal Group Limited (ASX: TGR) isn't far behind with short interest of 12.2%. Short sellers appear to be targeting the seafood company amid concerns that China could slap duties on Australian seafood.
- Northern Star Resources Ltd (ASX: NST) has seen its short interest jump to 10.3%. It appears as though some short sellers aren't convinced by its merger with fellow gold miner Saracen Mineral.
- Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. This communications satellite technology provider's shares have been suspended for over a year while it undertakes a recapitalisation.
- Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is flat week on week. This poultry company was a poor performer in FY 2020 due to COVID-19 headwinds and higher input costs. Short sellers don't appear confident that FY 2021 will be much better.
- Mesoblast limited (ASX: MSB) has seen its short interest fall week on week to 8.6%. Short sellers may have been closing positions last week following the release of a positive trial update.
- Western Areas Ltd (ASX: WSA) has seen its short interest rise to 8.4%. This appears to have been driven by a disappointing first half production update and issues at its Flying Fox operation.
- AVITA Medical Inc (ASX: AVH) has seen its short interest slide week on week to 7.8%. Short sellers will have been pleased to see the medical device company's shares tumble lower last week following the release of its second quarter update.
- Service Stream Limited (ASX: SSM) is back in the top ten with short interest of 7.3%. The essential network services company's shares have come under pressure this year amid mixed contract updates.
- Myer Holdings Ltd (ASX: MYR) has 7.1% of its shares held short, which is down slightly week on week. There are concerns the pandemic could accelerate the structural pressures the department store operator is facing.
