At the start of each 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 as the most shorted ASX share with short interest of 14.7%, which is up slightly week on week again. Short sellers appear to believe that the market is too optimistic on the travel industry recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 13%. This betting technology company's shares have been crushed this year and short sellers don't appear to believe the pain is over.
- Perpetual Limited (ASX: PPT) now has 12.7% of its shares held short, which is up week on week again. Short sellers have been increasing their positions after it was pressured into completing the acquisition of fellow fund manager Pendal Group Ltd (ASX: PDL). This effectively rules out a takeover of its own.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 11.4%. Short sellers may be targeting this network as a service operator's shares due to the sky high multiples they trade on.
- Sayona Mining Ltd (ASX: SYA) has 10.1% of its shares held short, which is up slightly week on week. This may be due to fears that lithium prices could have peaked.
- Zip Co Ltd (ASX: ZIP) has seen its short interest ease to 8.1%. There may be concerns over Zip's high debt and quest to become profitable.
- Core Lithium Ltd (ASX: CXO) has jumped into the top ten with short interest of 8%. Concerns over production delays and falling lithium prices have been weighing on this lithium developer's shares.
- Lake Resources N.L. (ASX: LKE) has short interest of 8%, which is down week on week. This lithium developer is allegedly having issues producing battery grade lithium at scale from its Kachi operation.
- Breville Group Ltd (ASX: BRG) has seen its short interest edge higher to 7.9%. This may have been driven by concerns that spending on household goods could suffer in 2023.
- Nanosonics Ltd (ASX: NAN) has short interest of 6.8%, which is down sharply week on week. Investors have concerns over this medical device company's sales model change in the key United States market.
