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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 despite its short interest falling heavily to 12.6%. Short sellers may have been closing positions after the travel agent's recent update.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest edge lower to 12.5%. Competition, cash burn, and valuation concerns may be weighing on this betting technology company's shares.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.9%. Short sellers have been adding to their positions since the network as a service provider released a disappointing quarterly update.
- Core Lithium Ltd (ASX: CXO) has short interest of 9.6%, which is up week on week. Valuation concerns have been weighing on this lithium share.
- Sayona Mining Ltd (ASX: SYA) has 9.3% of its shares held short, which is up slightly week on week. Fears that lithium prices have peaked could be behind this high level of short interest.
- Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down slightly week on week. Once again, lithium price concerns appear to be behind this. In addition, project cost blow outs have sparked fears that a capital raising could be coming.
- Lake Resources N.L. (ASX: LKE) is a fourth lithium share in the list with 7.6% of its shares held short, which is up week on week. J Capital is shorting this lithium developer due to concerns over its technology and project funding.
- Pointsbet Holdings Ltd (ASX: PBH) is back in the top ten with 7.3% of its shares held short. Competition and cash burn concerns appear to be why short sellers are going after this sports betting company.
- NextDC Ltd (ASX: NXT) has returned to the top ten with short interest of 7%. Short sellers may have concerns that economic conditions could weigh on its performance.
- Zip Co Ltd (ASX: ZIP) has short interest of 6.9%, which is flat week on week. Short sellers appear to be doubting that Zip will be able to deliver profitable growth.
