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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:
- Webjet Limited (ASX: WEB) is now the most shorted ASX share despite its short interest falling week on week to 11.35%. Short sellers have been targeting the online travel agent amid concerns over the travel market recovery following the spread of the Delta variant.
- Zip Co Ltd (ASX: Z1P) has seen its short interest reduce notably week on week to 10.7%. Short sellers appear to have been closing their positions following M&A activity in the BNPL industry.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 9.6%. Short sellers have been targeting this travel agent due to longer than expected delays in the travel market recovery.
- Kogan.com Ltd (ASX: KGN) has short interest of 8.5%, which is down significantly week on week. Short sellers may be closing positions on the belief that lockdowns are boosting sales and helping the company work through its inventory issues.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.4% of its shares held short, which is up slightly week on week. Concerns over this communications, defence, and space company's cash flows appear to be behind this.
- Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. Fears over a major contract renewal with a supermarket giant continue to weigh on investor sentiment.
- Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is down week on week. Weak salmon prices have been weighing on investor sentiment. Though, news that a rival is being taken over today could boost sentiment.
- PolyNovo Ltd (ASX: PNV) has seen its short interest increase to 7.1%. Short sellers have been increasing their positions in this medical device company following a soft finish to FY 2021.
- A2 Milk Company Ltd (ASX: A2M) has seen its short interest ease to 6.7%. Countless guidance downgrades, weakness in the daigou channel, and concerns over potential regulatory changes in China are weighing on its shares.
- InvoCare Limited (ASX: IVC) has seen its short interest remain flat at 6.5%. Short sellers appear to be targeting this funerals company amid concerns that it is losing market share. This is despite its significant investment in acquisitions and its strategy.
