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:
- Tassal Group Limited (ASX: TGR) is now the most shorted share after its short interest rose slightly to 9.9%. This seafood company has been targeted by short sellers due to weak salmon prices and concerns over the Australia-China trade war.
- Resolute Mining Limited (ASX: RSG) has seen its short interest rise week on week again to 9.8%. Short sellers have been going after this gold miner due to its weak production, disappointing guidance, and issues at its Bibiani operation in Ghana.
- Webjet Limited (ASX: WEB) is no longer the most shorted ASX share after its short interest reduced to 9.8%. Nevertheless, this is still a high level of short interest and appears to be down to concerns over the travel market recovery and its valuation.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 9.2%, which is up slightly week on week. Once again, this appears to have been driven by concerns over its valuation and the stalling travel market recovery.
- Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is flat week on week. An unfavourable shift in its sales mix and the exit of its CEO could be weighing on investor sentiment.
- Metcash Limited (ASX: MTS) has seen its short interest ease slightly to 7.3%. Concerns over a potential supermarket price war and its high capital expenditure plans could be behind this.
- Zip Co Ltd (ASX: Z1P) has entered the top ten with short interest of 7.2%. Short sellers are going after the buy now pay later provider despite it reporting strong growth during the third quarter. Valuation concerns could be weighing on sentiment.
- Megaport Ltd (ASX: MP1) has short interest of 6.8%, which is up again week on week. Unfortunately for short sellers, the Megaport share price surged higher last week after it released a solid third quarter update.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest remain flat at 6.1%. Short seller will have been pleased to see the online furniture and homewares retailer's shares sink lower last week after revealing plans to invest materially in its growth at the expense of margins.
- Alkane Resources Limited (ASX: ALK) is back in the top ten with 6% of its shares held short. Investors appear disappointed with the slow progress the company is making with its rare earths project.
