These are the 10 most shorted shares on the ASX

Temple & Webster Group Ltd (ASX:TPW) and Zip Co Ltd (ASX:Z1P) shares are among the most shorted shares on the ASX this week…
The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia. –

Model bear in front of falling line graph, cheap stocks, cheap ASX shares

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:

  • Tassal Group Limited (ASX: TGR) has become the most shorted share again despite its short interest falling week on week to 9.6%. This seafood company has been targeted due to weak salmon prices and concerns that China might slap duties on Australian produce.
  • Resolute Mining Limited (ASX: RSG) has seen its short interest ease week on week to 9.4%. Short sellers have been going after this gold miner due to its weak production, disappointing guidance, and (now resolved) political issues relating to its Bibiani operation in Ghana.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest jump significantly to 9.4%. Short sellers have been increasing their positions in this online furniture and homewares retailer since it announced plans to invest materially in its growth at the expense of profit margins.
  • Ltd (ASX: KGN) has also seen its short interest jump week on week to 9%. Short sellers have been piling in amid concerns over inventory issues, discounting, and its slowing sales growth.
  • Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 8.9%, which is down slightly week on week once again. The travel agent’s shares have come under pressure since it revealed that its second half loss is expected to be as large as the one recorded in the first half. This was materially more than the market anticipated.
  • Webjet Limited (ASX: WEB) has seen its short interest ease notably to 8.4%. The online travel agent has been targeted due to concerns over its valuation and the travel market’s stuttering recovery.
  • Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is flat week on week. The recent exit of its CEO and concerns over its contract discussions with Woolworths Group Ltd (ASX: WOW) appear to be weighing on sentiment.
  • Megaport Ltd (ASX: MP1) has short interest of 7.8%, which is up again week on week. This high level of short interest appears to have been driven by concerns over the premium its shares trade at compared to the market average.
  • Metcash Limited (ASX: MTS) has seen its short interest edge lower to 7.3%. Investors may be concerned by reports that trading conditions are reverting back to normal again in the supermarket industry. This could mean it gives back market share to the big two.
  • Zip Co Ltd (ASX: Z1P) has short interest of 6.9%, which is down week on week. Valuation concerns and international expansion execution risks appear to be the main reason for this high level of short interest.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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 recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, ltd, MEGAPORT FPO, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!