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 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:
- Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest rose to 15.2%. Short sellers have been increasing their positions amid concerns over its valuation and the impact that the Omicron variant could have on the travel market recovery.
- Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 11.1%. Short sellers will have been celebrating last week after the ecommerce company's shares tumbled following the release of another disappointing half year update.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 10.8%. Short sellers appear concerned by increasing competition in the buy now pay later market and rising costs to support its growth.
- BHP Group Ltd (ASX: BHP) has short interest of 10.1%, which is up week on week once again. Traders are shorting BHP's shares in order to profit from the unwinding of its dual listing, which will take effect later today.
- Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is up week on week again. This biotech company's shares have come under pressure over the last 12 months due poor trial results and its cash burn. The loss of a potential US$1.25 billion deal with Novartis hasn't helped the latter.
- Webjet Limited (ASX: WEB) has short interest of 9.6%, which is up week on week. As with Flight Centre, this appears to have been driven by concerns about the travel market recovery.
- Redbubble Ltd (ASX: RBL) has short interest of 9.2%, which is down week on week. Short sellers may have been closing positions to lock in their gains after this ecommerce company's shares were sold off following a disappointing trading update.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.2%. Although this medical device company's performance has been improving, short sellers don't appear to believe it will last.
- Appen Ltd (ASX: APX) has seen its short interest rise to 7.7%. Short sellers aren't giving up on this artificial intelligence data services provider despite it being tipped to surprise to the upside with its full year results next month.
- Nanosonics Ltd (ASX: NAN) has 7.2% of its shares held short once again. Short sellers may be targeting the medical device company due to the lofty multiples that its shares trade on.
