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Once a 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 it can be 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:
- Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest jumped to 13.3%. Concerns that the travel market recovery could be derailed by the Omicron variant sent this travel agent's shares crashing lower last week.
- Kogan.com Ltd (ASX: KGN) has seen its short interest rise week on week again to 12%. An underwhelming update from this ecommerce company last week weighed heavily on its shares, much to the delight of short sellers.
- Redbubble Ltd (ASX: RBL) has short interest of 10.6%, which is up slightly week on week. Short sellers continue to increase their positions in this ecommerce company amid concerns it could be underperforming expectations materially.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 9.4%. This appears to have been driven by concerns about reports of rising fraud in the BNPL industry and increasing competition.
- Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.1% of its shares held short, which is up again week on week. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
- Webjet Limited (ASX: WEB) has short interest of 9%, which is down week on week. Short sellers will have been pleased to see the Webjet share price sink last week amid omicron concerns.
- Mesoblast limited (ASX: MSB) has short interest of 8.9%, which is up week on week. This biotech company's precarious financial position is likely to be weighing on sentiment. Mesoblast is holding its annual general meeting this week and could be worth watching.
- Cooper Energy Ltd (ASX: COE) has 8.7% of its shares held short, which is up week on week again. Cooper's underperforming Sole Gas operation appears to be behind this short interest.
- Inghams Group Ltd (ASX: ING) has 7.8% of its shares held short, which is down week on week. Short sellers have been targeting this poultry producer due to high grain costs.
- Temple & Webster Group Ltd (ASX: TPW) is back in the top ten with 7.5% of its shares held short. Short sellers don't appear to believe this ecommerce company is performing in line with the market's expectations.
