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 share despite its short interest easing to 14.9%. Short sellers appear to believe that the travel market recovery could take longer than expected.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise again to 12.4%. This appears to be due to valuation concerns and weak investor sentiment in the betting industry.
- Block Inc (ASX: SQ2) has short interest of 11.4%, which is down slightly week on week. This payments company's shares tumbled late last week after its outlook commentary disappointed the market.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.3%, which is down slightly week on week again. Much to the dismay of short sellers, this infection prevention company's shares are up 25% since this time last month.
- Lake Resources N.L. (ASX: LKE) has short interest of 10.3%, which is down slightly week on week. This lithium developer's shares have come under pressure this year amid the sudden exit of its CEO without comment and a short attack from J Capital.
- Regis Resources Limited (ASX: RRL) has short interest of 9.2%, which is up slightly week on week. This gold miner has been targeted by short sellers due to production issues.
- Zip Co Ltd (ASX: ZIP) has seen its short interest jump to 9.2%. Short sellers aren't giving up on this buy now pay later provider's shares despite a huge rebound recently. They appear to have doubts over the company's profit targets.
- EML Payments Ltd (ASX: EML) has short interest of 8.4%, which is down sharply week on week. Short sellers may have been closing positions in this payments company in order to lock in gains after its shares sank deep into the red following a disappointing European update.
- Megaport Ltd (ASX: MP1) has entered the top ten with short interest of 8.4%. This network as a service provider is due to release its full year results this week. Short sellers don't appear to believe the company will deliver on expectations.
- Mesoblast limited (ASX: MSB) has also entered the top ten with short interest of 8.3%. A series of disappointing trial results have been weighing on the biotech company's shares in recent years. Short sellers seem to believe this trend will continue.
