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.
I believe it is 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 12.4%. Investors appear concerned the pandemic could be accelerating the shift away from department stores to online shopping.
- Speedcast International Ltd (ASX: SDA) has short interest of 11.7%. This communications satellite technology provider's shares remain suspended as it declares itself bankrupt.
- Webjet Limited (ASX: WEB) has seen its short interest jump to 10.7%. Short sellers may be targeting the online travel agent due to potential delays in the recovery of the domestic travel market because of the outbreak in Victoria.
- Inghams Group Ltd (ASX: ING) has 9.5% of its shares held short, which is up slightly week on week. The poultry company looks set to deliver a disappointing result in FY 2020 due to an unfavourable shift in its sales mix.
- Nearmap Ltd (ASX: NEA) has seen its short interest edge lower again to 8.2%. Short sellers continue to close their positions in the aerial imagery and location data technology company after its resilient performance during the pandemic.
- Bank of Queensland Limited (ASX: BOQ) has seen its short interest reduce to 8.1%. Short sellers have been going after the regional bank following a soft half year result and a weak outlook. But they may feel the worst is now factored into its share price.
- Galaxy Resources Limited (ASX: GXY) has 8% of its shares held short, which is down week on week. Short sellers have been targeting Galaxy and fellow lithium miners due to sustained weakness in the price of the battery making ingredient.
- Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest fall to 7.8%. Short sellers may be going after this biopharmaceutical company due to its lofty valuation.
- Orocobre Limited (ASX: ORE) is back into the top ten with short interest of 7.1%. As with Galaxy, ultra low lithium prices have been weighing on this lithium miner's performance.
- Freedom Foods Group Ltd (ASX: FNP) is in the top ten with 6.9% of its shares held short. The diversified food company recently suspended its shares until 30 October while it looks through its accounts for potential fraud.
