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) remains the most shorted share despite its short interest easing to 14.9%. Last week the travel agent's shares came under pressure after it posted another large half year loss.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise again to 11.8%. The betting sector has come under significant pressure in recent months and short sellers don't appear to expect that to change any time soon.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise week on week to 11.3%. This buy now pay later provider recently released its half year update and revealed a greater than expected loss. This has led to speculation that a capital raising is coming soon.
- Kogan.com Ltd (ASX: KGN) has seen its short interest rise to 10.5%. This ecommerce company's shares came under pressure last week after it swung to a loss during the first half. The company also revealed a sharp pullback in its core Kogan revenues despite a rise in customers.
- Nanosonics Ltd (ASX: NAN) has short interest of 9.8%, which is up again week on week. This infection prevention company's shares have been falling heavily this year following the announcement of a change in its sales model in the United States.
- Mesoblast limited (ASX: MSB) has short interest of 9.7%, which is up slightly week on week. Short sellers have been going after this biotech amid poor trial results, significant cash burn, and the loss of a major deal with Novartis.
- Webjet Limited (ASX: WEB) has short interest of 9.7%, which is down slightly week on week for a second week in a row. Some short sellers may have been closing positions now international borders are reopening.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise again to 9.3%. This medical device company's mixed performance appears to be attracting short sellers.
- Tyro Payments Ltd (ASX: TYR) is back in the top ten with short interest of 8.4%. Last week this payments company's shares were sold off after its EBITDA tumbled 67% to just $2.8 million.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 8.3%. Like many online retailers, Temple & Webster's shares have come under pressure in recent months amid concerns over valuations, increasing marketing costs, and slowing growth.
