Every Monday 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:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the Australian share market with short interest of 11.9%. With more and more spending shifting online, short sellers appear to believe Myer’s prospects of a successful turnaround are dwindling.
• Speedcast International Ltd (ASX: SDA) has short interest of 11.7% again. This communications satellite technology provider’s shares have been suspended since February after its debt load became too much and led to it declaring itself bankrupt.
• Inghams Group Ltd (ASX: ING) has 9.7% of its shares held short, which is up slightly week on week. The poultry company’s shares have come under pressure amid concerns that its performance in FY 2020 could be impacted by an unfavourable sales mix because of the pandemic. Increased feed costs could also weigh on margins.
• Webjet Limited (ASX: WEB) has seen its short interest fall slightly week on week to 9.6%. Short sellers appear to believe that the online travel agent’s shares are overvalued based on its medium term outlook because of difficult travel markets.
• Orocobre Limited (ASX: ORE) has seen its short interest surge higher week on week to 8.25%. Last week the lithium miner revealed that it has cut its operating costs to their lowest on record. However, this is still higher than the price it is commanding for its lithium.
• CLINUVEL Pharmaceuticals Limited (ASX: CUV) has seen its short interest remain flat at 8%. Last week this biopharmaceutical company released its fourth quarter update and revealed a 20% decline in cash receipts compared to the prior corresponding period. Lockdowns led to softening sales of its SCENESSE product.
• Nearmap Ltd (ASX: NEA) has seen its short interest fall to 7.8%. Short sellers appear to be closing positions after the aerial imagery technology and location data company’s performance remained solid during the pandemic.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest fall to 7.8%. Last month the regional bank lifted its coronavirus provisions and warned that there could be more to come. Short sellers appear confident that the worst is not over for the bank.
• Zip Co Ltd (ASX: Z1P) has short interest of 7.7%, down slightly week on week. Short sellers may be targeting the buy now pay later provider due to a recent rise in bad debts. Though, it is worth noting that forward indicators are pointing to these easing.
• Galaxy Resources Limited (ASX: GXY) has re-entered the top ten with short interest of 7%. Rock bottom lithium prices are weighing heavily on Galaxy’s profits and look unlikely to improve any time soon due to oversupply issues.

More reading

• These were the best performing ASX 200 shares in July
• Top ASX Stock Picks for August 2020
• Top brokers name 3 ASX shares to sell next week
• These were the best performing shares on the ASX 200 in July
• Will the coronavirus kill cash?

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These are the 10 most shorted shares on the ASX appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33lt7pY

In July, the S&P/ASX 200 (ASX: XJO) saw a halt to previous gains. Rising coronavirus infections in Victoria tempered investor appetite with the index ending the month 29.9 points down. On that note, let’s take a look at the worst performing ASX 200 shares in July. 

Avita Therapeutics Inc (ASX: AVH) 

The Avita Therapeutics share price fell 32.56% in July to close the month at $6.07. Avita Therapeutics is a regenerative medicine company. It produces the ‘Recell System’ which is essentially a spray-on skin therapy. Currently used to treat burns, it is also being assessed for the treatment of vitiligo, scar reconstruction, and aesthetic applications. Growth in sales of the Recell System slowed significantly in the face of coronavirus, with sales revenue of US$3.79 million in the fourth quarter compared to US$3.78 million in the third quarter. 

Lockdown measures drove a reduction in accidents leading to burn injuries, which the Recell System is used to treat. Patient and facility access was also limited due to the onset of the pandemic. Sales had been growing strongly prior to COVID-19; over the full year, Recell System sales grew 213% to US$13.79 million. The reprioritisation of hospital resources meant April results were the lowest seen this calendar year. Fortunately, the benefits of the Recell System, including reduced hospital stays and fewer surgeries, enabled a recovery in procedural volume growth in May and June. 

IDP Education Ltd (ASX: IEL) 

The IDP Education share price fell 14.14% in July to finish the month at $13.30. IDP Education operates in international education services, helping international students study in English speaking countries. The company is also a co-owner of IELTS, the world’s most popular English language test, and operates English language teaching courses across South East Asia. There was no news out of the education provider to prompt the price fall. The growing realisation that coronavirus restrictions may be in place long term, however, probably turned investors off the company which relies on international mobility. 

IDP Education conducted an emergency capital raise at the start of the coronavirus crisis and took measures to reduce operational expenditure. Travel restrictions and school closures in destination markets caused uncertainty regarding the timing of future intakes. With restrictions still in place, IDP Education is hoping to capture expected deferred demand once lockdowns are lifted. In June, major shareholder, the Board of Education Australia Limited, sold shares equivalent to 5.1% of IDP Education’s issued capital. The Board said that its motivation to reduce its holding in IDP Education did not relate to its view of the potential of the company or its business.  

AMP Limited (ASX: AMP)

The AMP share price dropped 21.51% in July to close the month at $1.46. The embattled wealth manager saw shares dip sharply last week following an update on its 1H FY20 results. Underlying profit for retained businesses is expected to be in the order of $140 – $150 million. Results have been impacted by factors including market volatility and a credit loss provision for AMP Bank. AMP did complete the sale of AMP Life during the half, which serves to simplify the portfolio and free up capital. The post-Royal Commission remediation program remains on track and is expected to be 80% complete by the end of 2020.

The wealth unit saw net cash outflows of $4.4 billion, impacted by the early release of superannuation scheme and the loss of corporate super mandates. AMP reported expected assets under management of $126 billion, 6% lower than 2H FY19. The capital unit is expected to see performance and transaction fees fall by around 40% due to market impacts. The banking unit has reported a credit loss provision of $25 million for COVID-19 related macro-economic conditions. First half results have been impacted by market volatility, but according to CEO Francesco De Ferrari, significant progress was made in delivering on strategy with the simplified portfolio setting the business up well for the future. 

Monadelphous Group Limited (ASX MND) 

The Monadelphous Group share price declined 17.65% in July to finish the month at $8.91. Monadelphous is an engineering group providing construction, maintenance, and industrial services to the resources, energy and infrastructure sectors. The Monadelphous share price is now just 7 cents above its March low of $8.84. The company has seen delays, suspensions, and reductions in services across its projects and worksites as a result of COVID-19. Monadelphous advised in May that if COVID-19 disruptions continued, revenue would be similar to that of the prior corresponding period. 

In June, the company announced it had secured a number of contracts in the resources and energy sectors with a combined value of $150 million. Monadelphous was awarded construction and maintenance contracts in the Pilbara with BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG). The company has also been awarded a contract by Newcrest Mining Limited (ASX: NCM) to provide capital project services at gold mining operations in Papua New Guinea. 

oOh!Media Ltd (ASX: OML) 

The oOh!Media share price fell 17.58% in July to close the month at 75 cents. Shares in the outdoor media company have fallen from above $3 pre-pandemic as continued lockdowns take their toll. oOh!Media manages advertising in public spaces, however demand for its services has taken a dive as the public spends more time at home. Prior to the pandemic, out of home advertising had seen a growing audience and market share. The sudden impact of the COVID-19 pandemic on revenue meant the company’s cost base had to be rapidly adjusted. 

oOh!Media has reduced discretionary spend, negotiated rent savings, and reduced capital expenditure to manage cash flow. The out of home market has been disproportionately impacted compared to other forms of media. This impact has been particularly pronounced in specific areas such as airports. Around 85% of advertisers due to run campaigns in April and May deferred them to the second half of the year. Nonetheless, the advertiser did see a significant uplift in activity in June and July as restrictions were eased outside Victoria. 

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the worst performing shares on the ASX 200 in July
• 7 ASX shares to watch this reporting season
• Top brokers name 3 ASX shares to sell next week
• These were the best performing shares on the ASX 200 in July

Kate O’Brien owns shares of Avita Medical Limited, BHP Billiton Limited, and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and Idp Education Pty Ltd. The Motley Fool Australia has recommended Avita Medical Limited and oOh!Media Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These were the worst performing ASX 200 shares in July appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hYpXwi

On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very disappointing note. The benchmark index fell 2% to 5,927.8 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to open flat.

The ASX 200 looks set to open the week flat despite a positive end on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 1 point lower. On Wall Street on Friday the Dow Jones rose 0.45%, the S&P 500 climbed 0.8% higher, and the Nasdaq index jumped 1.5%. The latter was given a boost by the Apple share price, which surged 10% higher after its quarterly update. The tech giant is now the world’s most valuable company.

Victoria “State of Disaster”.

With Victoria declaring a “State of Disaster” and locking down the state, a number of shares are likely to be impacted both positively and negatively. Reports of panic buying in supermarkets could give Coles Group Ltd (ASX: COL) shares a lift today. Whereas Crown Resorts Ltd (ASX: CWN) shares could struggle given how its Melbourne casinos and hotels are likely to be empty until mid-September.

Oil prices jump.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week on a positive note. According to Bloomberg, on Friday night the WTI crude oil price climbed 0.9% to US$40.27 a barrel and the Brent crude oil price rose 0.6% to US$43.52 a barrel. This means that oil prices recorded their third straight month of gains.

Gold price surges higher.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise on Monday after the gold price surged higher again. According to CNBC, the spot gold price rose 1% to US$1,985.90 an ounce. At one point on Friday night the gold price broke above US$2,000 an ounce for the first time on record.  

Goodman Group given sell rating.

Analysts at Goldman Sachs believe the Goodman Group (ASX: GMG) share price is overvalued. This morning the broker put a sell rating and $11.25 price target on the property company’s shares. It believes the market is pricing in an unrealistic earnings per share growth rate of ~9% per annum between FY 2020 and FY 2024. It feels a growth rate of 6% per annum is more realistic.

More reading

• Top ASX Stock Picks for August 2020
• These were the worst performing shares on the ASX 200 in July
• These were the best performing shares on the ASX 200 in July
• 5 things to watch on the ASX 200 next week
• Here’s how to start investing with $5k

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Pj2J7K