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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 14.1%, which is down week on week. Short sellers appear concerned by revenue margin pressures.
- Perpetual Limited (ASX: PPT) has 13.1% of its shares held short, which is up week on week once again. It appears that some investors aren't confident that things will get easier for the fund management industry in 2023.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 12.9%. Short sellers aren't giving up on this betting technology company despite its shares crashing 60% over the last 12 months.
- Megaport Ltd (ASX: MP1) has seen its short interest ease to 10.6%. Concerns over this network as a service operator's cash flow generation appears to be behind this high level of short interest.
- Sayona Mining Ltd (ASX: SYA) has 10.1% of its shares held short, which is down week on week. This may be due to fears that lithium prices have peaked and are heading sharply lower from here.
- Core Lithium Ltd (ASX: CXO) has short interest of 8.8%, which is up since last week. Valuation concerns, production delays, and falling lithium prices could be the reason why short sellers are loading up on this lithium developer's shares.
- Breville Group Ltd (ASX: BRG) has seen its short interest edge lower again to 7.3%. There are concerns that demand for this appliance manufacturer's products could soften due to housing market weakness and the cost of living crisis.
- Lake Resources N.L. (ASX: LKE) has short interest of 7.1%, which is down slightly week on week. Analysts at J Capital are targeting the company due to concerns over its technology and funding.
- NextDC Ltd (ASX: NXT) has entered the top ten with short interest of 7%. This may be due to the sky high multiples the data centre operator's shares trade on.
- Pointsbet Holdings Ltd (ASX: PBH) is back in the top ten with short interest of 6.9%. Fierce competition and its ongoing cash burn may be why short sellers are targeting this sports betting company.
