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) continues to be the most shorted ASX share after its short interest remained flat week on week at 12.1%. Short sellers will have been disappointed to see Flight Centre’s shares jump today after the US announced the reopening of its borders.
- Kogan.com Ltd (ASX: KGN) has short interest of 10.7%, which is up notably week on week. Short sellers appear to be targeting this ecommerce company due to inventory issues and its slowing sales growth.
- Redbubble Ltd (ASX: RBL) has short interest of 10.4%, which is up slightly since last week. Short sellers have been increasing their positions in this ecommerce company since the release of a disappointing quarterly update.
- Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up slightly week on week. Valuation concerns appear to be the reason for this high level of short interest.
- Zip Co Ltd (ASX: Z1P) has seen its short interest jump to 8.9%. Short sellers have increased their positions despite the buy now pay later provider delivering a record monthly performance in October.
- Mesoblast limited (ASX: MSB) has short interest of 8.8%, which is down slightly week on week. Concerns that this biotech company will have to raise funds soon could be weighing on sentiment.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.6% of its shares held short, which is up week on week once again. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
- Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is flat week on week. Last week this poultry producer’s shares sank after revealing that higher grain costs were impacting its financial performance.
- Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week once again. Short sellers have been targeting this energy company due to concerns over the Sole Gas operation.
- BHP Group Ltd (ASX: BHP) has seen its short interest remain flat week on week at 6.9%. The softening iron ore price could be behind this high level of short interest.
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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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