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:
- IDP Education Ltd (ASX: IEL) has jumped to the top spot after its short interest rose to 10.9%. Short sellers have been loading up on this language testing and student placement company's shares after it lost its monopoly in Canada.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 10.5%. Short sellers appear to believe that consensus expectations are too high.
- Lake Resources N.L. (ASX: LKE) has 9.7% of its shares in the hands of short sellers, which is up materially since last week. Short sellers will have been celebrating last week after a dismal update sent this lithium share crashing deep into the red.
- Core Lithium Ltd (ASX: CXO) has a short interest of 9%, which is down week on week. This appears to be due to valuation concerns.
- AMA Group Ltd (ASX: AMA) has seen its short interest rise slightly to 7.9%. This crash repair company's worrying balance sheet may be behind this.
- Lendlease Group (ASX: LLC) has a short interest of 7.8%, which is up week on week. Short sellers may expect this global property developer to struggle if there is a recession.
- Temple & Webster Group Ltd (ASX: TPW) has 7.7% of its shares in the hands of short sellers, which is up slightly week on week. Retail shares have been hit hard recently due to concerns over consumer spending.
- JB Hi-Fi Limited (ASX: JBH) has entered the top ten with a short interest of 7.5%. As with Temple & Webster, consumer spending concerns appear to be behind this.
- Select Harvests Ltd (ASX: SHV) has returned to the top ten with 7.5% of its shares held short. This almond producer has been having a tough time of late and short sellers don't appear confident that things will change quickly.
- Breville Group Ltd (ASX: BRG) has 7.4% of its shares held short, which is down slightly since last week. Fears that the cost of living crisis could impact demand may be behind this short interest.
