These are the 10 most shorted ASX shares this week

Short sellers are betting on these ASX shares tumbling from current levels…

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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 to be the most shorted ASX share after its short interest rose to 11.9%. Short sellers appear to believe weaker revenue margins could lead to Flight Centre falling short of expectations.
  • Megaport Ltd (ASX: MP1) has seen its short interest increase to 10.3%. The sudden departure of the network as a service provider's CEO and CFO appears to have spooked investors.
  • Zip Co Ltd (ASX: ZIP) has short interest of 10.1%, which is up marginally week on week. Short sellers appear to be doubting Zip's ability to achieve its profit targets.
  • Core Lithium Ltd (ASX: CXO) has short interest of 9.5%, which is down week on week. Short sellers aren't giving up on this one despite recent M&A activity in the lithium industry.
  • Sayona Mining Ltd (ASX: SYA) is another ASX lithium share that short sellers aren't giving up on. Its short interest has increased to 8.8% despite it announcing the restart of the NAL project.
  • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest jump to 7.8%. Short sellers don't appear confident that this furniture retailer is performing well in the tough economic environment.
  • Pointsbet Holdings Ltd (ASX: PBH) has short interest of 7.3%, which is up slightly week on week. This may be due to competition and cash burn concerns.
  • Breville Group Ltd (ASX: BRG) has returned to the top ten with short interest of 7.3%. The struggling housing market and the cost of living crisis may be why short sellers are targeting this appliance manufacturer.
  • AMA Group Ltd (ASX: AMA) has entered the top ten with short interest of 7.25%. This may be due to the smash repairer's extremely high level of debt.
  • Brainchip Holdings Ltd (ASX: BRN) has seen its short interest remain flat at 7.2%. Despite recent share price weakness, this struggling semiconductor still has a lofty market capitalisation and little revenue.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, Jb Hi-Fi, Megaport, PointsBet, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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