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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) remains the most shorted share with 14.9% of its shares held short. There are concerns that cost of living pressures could weigh on the travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 12.2%. This could be due to weak investor sentiment in the betting industry.
- Block Inc (ASX: SQ2) has short interest of 11.3%, which is down slightly week on week again. Much to the dismay of short sellers, this payments company's shares have rallied 40% in a month.
- Lake Resources N.L. (ASX: LKE) has short interest of 10.8%, which is up week on week. As with Block, short sellers may be regretting that they didn't close their positions sooner. This lithium developer's shares rocketed over 40% last week.
- Nanosonics Ltd (ASX: NAN) has short interest of 10.8%, which is down week on week again. Concerns over changes to this infection prevention company's sales model in the US have been weighing on its shares.
- Zip Co Ltd (ASX: ZIP) has seen its short interest ease to 9.1%. This buy now pay later provider's shares are down 83% over the last 12 months. Short sellers don't appear to believe the declines are over.
- Regis Resources Limited (ASX: RRL) has short interest of 9%, which is down week on week. This gold miner's shares have come under pressure over the last 12 months due to production issues.
- Mesoblast limited (ASX: MSB) has short interest of 8.3%, which is flat week on week. Last week this biotech company's shares tumbled lower after it raised equity once again.
- Inghams Group Ltd (ASX: ING) has returned to the top ten with short interest of 8%. Concerns over margin pressure from higher input costs has been weighing on sentiment.
- Megaport Ltd (ASX: MP1) has seen its short interest drop to 7.9%. Unfortunately for short sellers, this network as a service provider's shares have rallied strongly over the last month amid optimism that it could soon be profitable.
