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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 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 ASX share with short interest of 17.6%. Short sellers appear to believe the market is too optimistic with the travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 12.8%. Sky high multiples and concerns over rising cash burn in the sports betting industry appear to be weighing on sentiment.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.9%, which is flat week on week. This infection prevention company's shares have come under pressure after it announced a major and disruptive change to its sales model in the United States.
- Webjet Limited (ASX: WEB) has short interest of 10.2%, which is down slightly week on week. Volatile travel markets and rising oil prices continue to weigh on sentiment.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.1%. This medical device company's underperformance appears to be attracting short sellers. Especially with its shares trading on high multiples.
- Kogan.com Ltd (ASX: KGN) has seen its short interest remain flat again at 9%. Short sellers appear concerned by its weakening sales, high marketing costs, and Amazon growing its Australian market share rapidly.
- EML Payments Ltd (ASX: EML) has seen its short interest remain steady at 8.7%. Short sellers may have concerns over the payments company's valuation as rates rise and financial models are reassessed.
- Omni Bridgeway Ltd (ASX: OBL) is back in the top ten with short interest of 8.3%. The litigation funder's shares could be in the crosshairs of short sellers due to the Government wanting to overhaul class action laws.
- AMA Group Ltd (ASX: AMA) has also returned to the top ten with 8.2% of its shares held short. Last month this crash repair company reported a loss of $46.3 million for the first half of FY 2022.
- Zip Co Ltd (ASX: Z1P) has returned to the top ten despite its short interest easing to 7.8%. This buy now pay later provider's shares have fallen heavily this year amid concerns over rising competition and increasing cash burn.
