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 despite its short interest easing to 11.8%. Revenue margin headwinds appear to be behind this.
- Megaport Ltd (ASX: MP1) has seen its short interest increase to 11.3%. Short sellers have been increasing their positions since this network as a service provider announced the sudden departure of its CEO and CFO.
- Zip Co Ltd (ASX: ZIP) has short interest of 10.2%, which is up marginally week on week once again. Regulatory concerns may be weighing on this buy now pay later provider's shares.
- Sayona Mining Ltd (ASX: SYA) has seen its short interest increase to 9.3%. Short sellers continue to increase their positions despite the lithium miner announcing the restart of the NAL project.
- Core Lithium Ltd (ASX: CXO) has short interest of 9.2%, which is down week on week. Unfortunately for short sellers, Core Lithium shares stormed higher last week after it announced its first shipment of lithium.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 8%. There are concerns that this online furniture retailer could underperform in the tough economic environment.
- JB Hi-Fi Limited (ASX: JBH) has returned to the top ten with short interest of 7.7%. There are concerns that this retail giant's sales could suffer because of the housing market downturn and cost of living crisis.
- Breville Group Ltd (ASX: BRG) has short interest of 7.3%, which is flat week on week. As with JB Hi-Fi, short sellers appear to believe this appliance manufacturer could be struggling in the current environment.
- Nextdc Ltd (ASX: NXT) has entered the top ten with short interest of 7.1%. This was bad timing by short sellers. This data centre operator's shares rocketed higher last week after announcing a major contract win.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest ease slightly to 7%. This semiconductor company's pitiful sales performance and crazy valuation are attracting short sellers.
