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:
- BHP Group Ltd (ASX: BHP) has become the most shorted ASX share after its short interest jumped to 17.1%. However, it is worth noting that there is a 7-day lag with the data. As traders were shorting BHP's shares in order to profit from the unwinding of its dual listing, this short interest is likely to reduce sharply now the unification is complete.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 15.1%. Short sellers don't appear to believe the travel market recovery will be as smooth sailing as the market is pricing in.
- Kogan.com Ltd (ASX: KGN) has seen its short interest remain flat at 11.1%. This ecommerce company's shares have come under significant pressure due to inventory issues, slowing sales, and higher costs.
- Zip Co Ltd (ASX: Z1P) has seen its short interest fall week on week to 10%. This buy now pay later provider's shares have fallen heavily over the last 12 months amid increasing competition and costs.
- Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is flat week on week. A series of poor trial results, significant cash burn, and the loss of a major deal with Novartis continue to weigh on sentiment.
- Webjet Limited (ASX: WEB) has short interest of 9.1%, which is down week on week. This online travel agent's shares are being targeted due to concerns over ongoing COVID disruptions.
- Polynovo Ltd (ASX: PNV) has seen its short interest fall to 8.4%. This medical device company's inconsistent performance and the high multiples its shares trade on have been attracting short sellers.
- Regis Resources Limited (ASX: RRL) has entered the top ten with short interest of 7.8%. Operational issues at Duketon and delayed progress at McPhillamys have been weighing on sentiment.
- Betmakers Technology Group Ltd (ASX: BET) is back in the top ten with 7.3% of its shares held short. This betting technology company's shares trade on particularly high multiples at a time when rates are rising, which could explain its elevated short interest.
- Redbubble Ltd (ASX: RBL) has short interest of 7.3%, which is down week on week again. Short sellers may believe this ecommerce company's shares are close to bottoming after a falling 73% over the last 12 months.
