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) remains the most shorted ASX share with short interest of 14.3%, which is down slightly week on week. This travel agent was the most shorted share for almost the entirety of 2022.
- Perpetual Limited (ASX: PPT) now has 12.4% of its shares held short, down week on week. The fund management industry is going through a tough time right now and short sellers have been taking advantage.
- Megaport Ltd (ASX: MP1) has seen its short interest ease to 11.2%. Short sellers appear to be targeting this network as a service operator's shares due to concerns about its slowing growth and premium valuation.
- Sayona Mining Ltd (ASX: SYA) has 10.1% of its shares held short, which is flat week on week. This may have been driven by concerns that lithium prices could have peaked.
- Core Lithium Ltd (ASX: CXO) has short interest of 8%, which is flat since last week. Concerns over production delays and falling lithium prices appear to be behind this.
- Breville Group Ltd (ASX: BRG) has seen its short interest edge lower to 7.5%. Short sellers may be targeting this appliance manufacturer due to fears that spending on household goods could suffer in 2023.
- Lake Resources N.L. (ASX: LKE) has short interest of 7.5%, which is down week on week. One short seller alleges that this lithium developer is having issues producing battery grade lithium at scale.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest fall materially to 7.5%. Some short sellers may believe the betting technology company's shares are close to bottoming after crashing 67% over the last 12 months.
- Zip Co Ltd (ASX: ZIP) has seen its short interest ease to 7.4%. Short sellers may have concerns over Zip's high debt and profitability goals.
- Chalice Mining Ltd (ASX: CHN) has entered the top ten with short interest of 7.3%. This could have been driven by delays to the mineral exploration company's scoping study.
