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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) is still the most shorted ASX share after its short interest remained flat at 11.7%. Short sellers will have been disappointed to see the travel agent's shares rise on a strong update last week.
- Zip Co Ltd (ASX: ZIP) has short interest of 10.9%, which is up week on week again. It seems that some traders doubt that this buy now pay later provider will achieve its profit goals.
- Jervois Global Ltd (ASX: JRV) has 9.4% of its shares held short, which is up strongly week on week again. Short sellers have been loading up on this cobalt developer's shares after it suspended the final construction of the Idaho Cobalt Operations. The company made the move due to low cobalt prices and has already spent US$130 million on its construction.
- Core Lithium Ltd (ASX: CXO) has short interest of 9%, which is up week on week. Traders appear to believe that investors are valuing this lithium miner incorrectly.
- Sayona Mining Ltd (ASX: SYA) has seen its short interest ease to 8.9%. Weak lithium prices are likely to be behind this.
- Temple & Webster Group Ltd (ASX: TPW) has seen its short interest ease a touch to 8.4%. There are concerns that the housing market downturn and a return to offline shopping could be hitting this online furniture retailer hard.
- Lake Resources N.L. (ASX: LKE) has 8.4% of its shares in the hands of short sellers. Weak lithium prices and funding concerns appear to be behind this high level of short interest.
- Pointsbet Holdings Ltd (ASX: PBH) has returned to the top ten with 8.4% of its shares held short. Unfortunately for short sellers, the sports betting company's shares rose 17% last week. This appears to have been driven by speculation that a divestment could be in the works.
- AMA Group Ltd (ASX: AMA) has 8.2% of its shares held short, which is up week on week. Short sellers seem to be targeting the smash repair company due to the terrible state of its balance sheet.
- Megaport Ltd (ASX: MP1) has seen its short interest fall significantly to 8%. Short sellers have been closing positions in a hurry after this network as a service company released a very positive trading update.
