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 its short interest rising to 17.7%. While the outlook for the travel market is improving, short sellers appear to believe investors are too optimistic.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise slightly to 12.9%. Concerns over rising cash burn in the sports betting industry and tech valuations appear to be weighing on sentiment.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.8%, which is down slightly week on week. Short sellers have been targeting this infection prevention company's shares after it made a big (and risky) change to its sales model in the United States. It remains unclear if the change was forced by its long term distributor in the market.
- Webjet Limited (ASX: WEB) has short interest of 10.3%, which is down slightly week on week. Concerns over the travel market recovery continue to weigh on sentiment.
- EML Payments Ltd (ASX: EML) has seen its short interest rise to 9.5%. Short sellers may have concerns over regulatory risks and its valuation as rates rise.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise again to 9.5%. This medical device company's mixed performance and dwindling cash balance appear to have got investors worried.
- Zip Co Ltd (ASX: Z1P) has seen its short interest jump to 8.9%. Rising competition, increased marketing costs, and significant cash burn have been weighing on investor sentiment.
- Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 8.8%. Short sellers may be targeting this online retailer due to its weakening sales and changes to Apple's privacy settings. The latter has made it harder to advertise effectively to consumers, which has led to increased marketing costs in the industry.
- AMA Group Ltd (ASX: AMA) has 8.3% of its shares held short, which is up slightly week on week. Short sellers have been going after this crash repair company since it reported a half year loss of $46.3 million.
- Omni Bridgeway Ltd (ASX: OBL) has seen its short interest ease to 8.2%. Short sellers could be targeting this litigation funder's shares due to the Government wanting to overhaul class action laws.
