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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) continues its long run as the most shorted ASX share after its short interest rose to 18%. Short sellers appear convinced that the market is being too optimistic on the travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 12.7%. Short sellers appear to have been targeting this betting technology company over valuation concerns.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.7%, which is down slightly week on week. This infection prevention company's shares have come under pressure after it made a big 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. As with Flight Centre, short sellers appear to believe the travel market recovery could take longer than expected.
- Polynovo Ltd (ASX: PNV) has seen its short interest remain flat at 9.5%. Short sellers aren't giving up on this medical device company even after a solid trading update last week.
- EML Payments Ltd (ASX: EML) has seen its short interest reduce slightly to 9.4%. Regulatory risks and valuation concerns appear to be behind this high level of short interest.
- Kogan.com Ltd (ASX: KGN) has seen its short interest rise to 9%. This online retailer has been performing very poorly in FY 2022 and only delivered modest first half growth thanks to an acquisition. Short sellers don't appear to believe things will improve quickly.
- Zip Co Ltd (ASX: Z1P) has seen its short interest pullback to 8.3%. Short sellers have been going after this buy now pay later provider amid rising competition, increased marketing costs, and significant cash burn.
- AMA Group Ltd (ASX: AMA) has 8.3% of its shares held short, which is flat week on week. This crash repair company reported a very disappointing half year loss of $46.3 million in February.
- Omni Bridgeway Ltd (ASX: OBL) has seen its short interest ease to 8%. Concerns that this litigation funder could be impacted by an overhaul of class action laws may be behind this short interest.
