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 18.1%. This was up slightly week on week. Unfortunately for those short sellers, the Flight Centre share price surged higher last week amid improving sentiment in the travel sector.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 11.2%. This betting technology company's shares have lost over 50% of their value since this time last year. Concerns over its valuation and cash burn appear to be behind this weakness.
- Nanosonics Ltd (ASX: NAN) has short interest of 10.4%, which is down week on week again. Short sellers have been going after this infection prevention medical device company after it surprised the market with a big and disruptive change to its sales and distribution model in the United States.
- EML Payments Ltd (ASX: EML) has seen its short interest rise slightly to 9.5%. Regulatory risks and valuation concerns may be why short sellers are targeting EML.
- Webjet Limited (ASX: WEB) has short interest of 8.8%, which is down sharply week on week. Short sellers may be closing positions on the belief that trading conditions are now improving.
- Polynovo Ltd (ASX: PNV) has seen its short interest ease to 8%. Short sellers appear to have closed position in this medical device company after the release of a solid trading update earlier this month.
- Zip Co Ltd (ASX: Z1P) has seen its short interest ease to 8%. Despite short sellers closing positions, it hasn't stopped this buy now pay later provider's shares from continuing to slide. Last week they dropped to a multi-year low.
- Mesoblast limited (ASX: MSB) has returned to the top ten with short interest of 7.8%. Disappointing trial results and significant cash burn have weighed heavily on this biotech's shares.
- Kogan.com Ltd (ASX: KGN) has seen its short interest fall sharply to 7.6%. Short sellers may have been closing positions on the belief that this struggling online retailer's shares have finally found a bottom.
- AMA Group Ltd (ASX: AMA) has 7.1% of its shares held short, which is down week on week. This crash repair company disappointed the market in February when it reported a half year loss of $46.3 million.
