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:
- Betmakers Technology Group Ltd (ASX: BET) has become the most shorted share on the Australian share market despite its short interest easing slightly to 11.8%. This high level of short interest appears to have been driven by competition and cash burn concerns.
- Flight Centre Travel Group Ltd (ASX: FLT) saw its short interest fall meaningfully to 11.4%. With its shares up strongly this year, some short sellers appear to have been closing positions in a hurry.
- Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is up week on week. This seems to have been driven by fears that lithium prices have now peaked.
- Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is flat week on week. Continued weakness in spot lithium prices appears to have spooked investors.
- Megaport Ltd (ASX: MP1) has seen its short interest fall to 9.4%. This network as a service provider appears to have been targeted after reporting softening operating trends with its results.
- Zip Co Ltd (ASX: ZIP) has short interest of 7.7%, which is up week on week again. This buy now pay later provider's shares took a tumble last week following the release of its half-year results. Short sellers appear to believe it will struggle to achieve its profitability goals.
- Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down week on week. Major cost blow outs at the Kathleen Valley Lithium Project have been weighing on sentiment.
- Pointsbet Holdings Ltd (ASX: PBH) has 7.1% of its shares held short, which is down week on week. This appears to be due to competition and cash burn concerns.
- Lake Resources N.L. (ASX: LKE) has 6.9 % of its shares held short, which is down sharply week on week. Lake Resources has come under-fire due to doubts over its technology and project funding.
- Vulcan Energy Resources Ltd (ASX: VUL) is the fifth lithium share in the top ten with short interest of 6.9%. With lithium prices tipped to fall materially over the next 18 months, there may be concerns that this Germany-based developer could miss out on the sky high prices.
