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 to be the most shorted ASX share with short interest of 7.15%, which is down slightly week on week. Short sellers appear to believe the market is expecting too much from the travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 13.5%. Valuation concerns appear to be weighing on sentiment, particularly given how its operations are loss-making in an unforgiving investment environment.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.3%, which is up slightly week on week. Short sellers appear to be betting that a sudden and major change to this medical device company’s sales model in the United States will stifle its growth.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 11.1% despite the medical device company reporting heavy insider buying recently. Short sellers don’t appear to believe Polynovo’s poor operating performance will improve.
- Webjet Limited (ASX: WEB) has short interest of 9.8%, which is up week on week. Last week this online travel agent released its full year results and revealed another loss. However, it expects a big improvement in FY 2023.
- Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 9.6%. Kogan’s poor performance, management’s dismal inventory management, and rising competition from Amazon appear to be behind this high level of short interest.
- Appen Ltd (ASX: APX) has seen its short interest rise to 9.6%. Short sellers may believe that Appen could be facing softening demand for its services. Some tech giants are believed to be looking to bypass companies like Appen by taking things in-house.
- EML Payments Ltd (ASX: EML) has seen its short interest reduce to 9.5%. This payments company shares have crashed lower this year amid valuation and regulatory concerns and a poor performance during the third quarter.
- Regis Resources Limited (ASX: RRL) has entered the top ten with 9.1% of its shares held short. Labour shortages, cost pressures, and lower grades have been weighing on this gold miner’s shares.
- AMA Group Ltd (ASX: AMA) has 9.1% of its shares held short, which is flat week on week. This smash repair company’s precarious balance sheet has some investors believing that a recapitalisation will be required.