Once a 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:
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest jump week on week to 12.1%, making it the most shorted ASX share once again. Short sellers are not giving up on this travel agent giant despite borders reopening.
- Redbubble Ltd (ASX: RBL) has short interest of 10.2%, which is up slightly since last week. This ecommerce company’s recent quarterly update disappointed the market. Short sellers don’t appear to believe things will be improving in the near term.
- Webjet Limited (ASX: WEB) has short interest of 9.1%, which is down slightly week on week. This online travel agent’s shares remain a favourite for short sellers despite the improving travel market outlook. This could be due to valuation concerns.
- Kogan.com Ltd (ASX: KGN) has short interest of 8.9%, which is flat week on week. This ecommerce company’s shares have been targeted due to inventory issues and its softening sales growth.
- Mesoblast limited (ASX: MSB) has seen its short interest remain flat week on week at 8.9%. This high level of short interest appears to be due to concerns over this biotech company’s balance sheet. Another capital raising may be necessary in the near future based on its cash burn.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.4% of its shares held short, which is up meaningfully week on week. Much to the delight of short sellers, this defence and space company’s shares tumbled lower last week after it downgraded its earnings guidance.
- Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is up week on week. There are concerns that high grain costs could be putting pressure on this poultry producer’s margins.
- Zip Co Ltd (ASX: Z1P) has seen its short interest remain flat at 7.8%. Short sellers are holding firm with Zip despite it revealing a record quarterly performance last month.
- Cooper Energy Ltd (ASX: COE) has 7.5% of its shares held short, which is up week on week. A disappointing performance from Cooper’s Sole Gas operation has been weighing on sentiment.
- BHP Group Ltd (ASX: BHP) has seen its short interest rise week on week to 6.9%. Short sellers may believe falling iron ore prices will continue to drag on its performance. Though, it is worth noting that strong prices of other commodities are currently offsetting much of this.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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