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 17%, which is down slightly week on week. There are concerns that the market may be expecting too much too soon from the travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 13.5%. This betting technology company appears to have been targeted due to its lofty valuation.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.5%, which is up slightly week on week. Short sellers have been increasing their interest in this medical device company since it announced a major change to its sales model in the United States. Though, it is worth noting that last week management said the transition was going well.
- Polynovo Ltd (ASX: PNV) has seen its short interest continue to rise to 11.3%. Short sellers have been topping up their positions despite the medical device company's Chairman aggressively buying shares this month.
- Webjet Limited (ASX: WEB) has short interest of 10.1%, which is up week on week. Despite Webjet expecting a big improvement in its performance in FY 2023, short sellers don't appear confident this will be the case.
- Appen Ltd (ASX: APX) has seen its short interest rise to 9.9%. Short sellers will be breathing a sigh of relief after a crazy week. This AI services company's shares rocketed higher after receiving a takeover approach from Telus International. However, it gave back those gains after Telus withdrew its offer just hours after it was revealed. Appen also released a trading update which revealed a very poor performance during the first half.
- Regis Resources Limited (ASX: RRL) has short interest of 9.2%, which is up slightly since last week. This gold miner appears to have been targeted amid concerns over labour shortages, cost pressures, and lower grades.
- EML Payments Ltd (ASX: EML) has seen its short interest reduce to 9%. Short sellers have been going after this payments company since it revealed a deterioration in its performance during the third quarter.
- Kogan.com Ltd (ASX: KGN) has seen its short interest reduce to 9%. Short sellers have been targeting this ecommerce company due to its poor inventory management, weakening margins, and rising competition from Amazon.
- AMA Group Ltd (ASX: AMA) has 9% of its shares held short, which is down slightly week on week. This high level of short interest may be due to the crash repair company's precarious balance sheet.
