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 to be the most shorted ASX share despite its short interest easing to 17%. The Flight Centre share price is up 23% in 2022 but short sellers don't appear to believe these gains will last.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 13.2%. This betting technology company's shares are trading within a whisker of a 52-week low amid concerns over its valuation and cash burn.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.9%, which is down slightly week on week. Short sellers have been going after this medical device company since it announced a major change to its sales model in the United States.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise again to 10%. Valuation concerns and an inconsistent performance appear to be weighing on this medical device company's shares.
- Webjet Limited (ASX: WEB) has short interest of 9.7%, which is down week on week. Short sellers may believe the market is too bullish on the travel market recovery.
- Kogan.com Ltd (ASX: KGN) has seen its short interest climb again to 9.6%. Short sellers will have been celebrating last week after another disappointing update sent this ecommerce company's shares crashing to a multi-year low.
- Zip Co Ltd (ASX: Z1P) has seen its short interest fall to 8.9%. This buy now pay later provider's shares also dropped to a multi-year low last week, much to the delight of short sellers.
- EML Payments Ltd (ASX: EML) has seen its short interest ease to 8.7%. This payments company's shares crashed lower last week after it downgraded its profit guidance following a tough third quarter.
- AMA Group Ltd (ASX: AMA) has 8.7% of its shares held short, which is up slightly week on week. This crash repair company disappointed the market earlier this year with a half year loss of $46.3 million.
- Mesoblast limited (ASX: MSB) has seen its short interest edge higher to 8%. Short sellers have been targeting this biotech amid disappointing trial results and significant cash burn.
