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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) continues its long run as the most shorted ASX share after its short interest rose to 12.8%. Weak revenue margins appear to be a concern for investors.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest reduce to 11.9%. Competition and cash burn concerns seem to be weighing on this betting technology company's shares.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 10.2%. This network as a service provider's slowing growth may have attracted short sellers.
- Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is up week on week. Continued weakness in spot lithium prices has been weighing on investor sentiment.
- Sayona Mining Ltd (ASX: SYA) has 9.5% of its shares held short, which is up week on week. This also appears to have been driven by fears that lithium prices have peaked.
- Liontown Resources Ltd (ASX: LTR) has short interest of 8%, which is up week on week. As well as lithium price concerns, cost blow outs at the Kathleen Valley Lithium Project have caught the eye of short sellers.
- Lake Resources N.L. (ASX: LKE) is the fourth lithium share in the top ten with 7.8% of its shares held short, which is up week on week. A well-known short seller is targeting Lake Resources due to doubts over its technology and project funding.
- Zip Co Ltd (ASX: ZIP) has short interest of 7.4%, which is up strongly week on week. Concerns over major regulatory changes could be partly behind this high level of short interest.
- Pointsbet Holdings Ltd (ASX: PBH) has 7.3% of its shares held short, which is flat week on week. As with Betmakers, competition and cash burn concerns appear to be behind this.
- NextDC Ltd (ASX: NXT) has short interest of 7.1%. This may be due to concerns that economic conditions could weigh on this data centre operator's performance.
