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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 to be the most shorted ASX share despite its short interest easing to 15.6%. There are concerns that higher airfares and rising living costs could impact consumer spending on leisure travel.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.3%, which is flat week on week. This medical device company's shares have come under pressure amid concerns over a major and disruptive sales model change in the key United States market.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 11.8%. Short sellers aren't giving up on this betting technology company despite it recently announcing a share buyback.
- Block Inc (ASX: SQ2) has short interest of 10%, which is down slightly week on week. This mirrors the short interest of the payment company's shares on Wall Street.
- Lake Resources N.L. (ASX: LKE) has entered the top ten with short interest of 8.9%. The sudden exit of the lithium developer's CEO without comment appears to have spooked the market.
- PolyNovo Ltd (ASX: PNV) has seen its short interest rise to 8.8%. This medical device company's mixed performance over the last 12 months appears to be behind this.
- EML Payments Ltd (ASX: EML) has short interest of 8.6%, which is down week on week. Short sellers appear to believe this payments company's underperformance in the third quarter could continue into the fourth.
- Regis Resources Limited (ASX: RRL) has short interest of 8.5%, which is down week on week. Short sellers will have been disappointed to see this gold miner's shares surge higher last week following a record quarter.
- Kogan.com Ltd (ASX: KGN) is back in the top ten with short interest of 8.4%. Inventory mismanagement, supply chain headwinds, higher marketing costs, and Amazon's growing presence in Australia appear to be behind this short interest.
- Webjet Limited (ASX: WEB) has short interest of 8%, which is down slightly week on week. Cost of living pressures appear to have investors concerned that the travel market recovery could take longer than expected.
