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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.
