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 even though its short interest eased week on week to 11.3%. Short sellers may have concerns over revenue margin headwinds.
- Megaport Ltd (ASX: MP1) has seen its short interest jump to 10.2%. Slowing growth and the shock departure of its CEO has been weighing on this network as a service provider's shares.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease again to 10.2%. Competition and cash burn concerns have been weighing on its shares.
- Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is up week on week. Falling lithium prices seem to be behind this.
- Zip Co Ltd (ASX: ZIP) has short interest of 9.9%, which is up week on week. Short sellers seem to be doubting Zip's ability to achieve its profitability goals. Though, management appears confident it will get there as planned.
- Sayona Mining Ltd (ASX: SYA) has 8.9% of its shares held short, which is down week on week. Short sellers appear to believe the lithium industry is overvalued as a whole.
- Liontown Resources Ltd (ASX: LTR) has short interest of 8.2%, which is down week on week. Cost blow outs at the Kathleen Valley Lithium Project and lithium price weakness are likely to be behind this.
- Brainchip Holdings Ltd (ASX: BRN) is back in the top ten with short interest of 7.6%. Short sellers don't appear to believe this struggling semiconductor company warrants such a lofty valuation given its lack of revenue and intense competition from companies that spend billions on R&D each year.
- JB Hi-Fi Limited (ASX: JBH) has seen its short interest rise to 7.1%. This could be due to fears over the impact of the cost of living crisis on consumer spending.
- Nextdc Ltd (ASX: NXT) has short interest of 7.1%, which is up slightly week on week. This may be due to concerns that the tough economic environment could delay major contracts.
