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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 back as the most shorted ASX share after its short interest rose to 10%. Short sellers aren't giving up on the online travel agent despite its trading update which revealed a significant improvement in the performance of its WebBeds business.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall slightly week on week to just under 10%. Short sellers continue to hold onto their positions despite the travel agent expecting to reach profitability again during FY 2022.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.2% of its shares held short, which is up week on week. Short sellers have been targeting this defence and space company due to accounting and cash generation concerns.
- Zip Co Ltd (ASX: Z1P) has seen its short interest ease week on week to 9.2%. This appears to have been driven by concerns over rising costs and increasing competition in the BNPL space.
- Kogan.com Ltd (ASX: KGN) has short interest of 8.6%, which is down week on week. This high level of short interest appears to have been driven by fears that the ecommerce company's inventory woes will weigh on its performance for a little while longer.
- Piedmont Lithium Inc (ASX: PLL) has short interest of 8.4%, which is up since last week. Valuation and mining license approval concerns appear to be weighing on sentiment.
- Mesoblast limited (ASX: MSB) is back in the top ten with short interest of 8.1%. The biotech company is burning through cash and has warned that it may need to raise funds if deals aren't successfully executed in FY 2022.
- Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is flat week on week. Short sellers continue to target the poultry company despite it extending its key supply contract with Woolworths Group Ltd (ASX: WOW).
- Cooper Energy Ltd (ASX: COE) has 7.7% of its shares in the hands of short sellers, which is up sharply week on week. This appears to have been driven by the poor performance of its Project Sole.
- Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 7.7%. Short sellers may be targeting this ecommerce company following a severe deceleration in its growth during the fourth quarter of FY 2021.
