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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) has returned to the top spot despite its short interest easing to 10.4%. Short sellers may believe the cost of living crisis will eventually start to impact travel spending.
- IDP Education Ltd (ASX: IEL) has 9.6% of its shares held short, which is down week on week. This language testing and student placement company's shares have come under pressure after it lost its monopoly in Canada.
- Core Lithium Ltd (ASX: CXO) has a short interest of 9.3%, which is up week on week. This may be due to concerns about its valuation and the prospect of lithium prices sinking in the near term.
- Temple & Webster Group Ltd (ASX: TPW) has 8% of its shares in the hands of short sellers, which is up again week on week. Concerns over consumer spending could be behind this.
- AMA Group Ltd (ASX: AMA) has seen its short interest rise slightly to 8%. This crash repair company's balance sheet may be worrying investors.
- Lendlease Group (ASX: LLC) has a short interest of 7.9%, which is up week on week once again. Short sellers may believe this global property developer will struggle if there is a global recession.
- Lake Resources N.L. (ASX: LKE) has 7.7% of its shares in the hands of short sellers, which is down sharply since last week. Short sellers may have been closing positions after the lithium developer's shares crashed deep into the red last month.
- Select Harvests Ltd (ASX: SHV) has 7.6% of its shares held short, which is up slightly since last week. Short sellers don't appear to believe this struggling almond producer's performance is going to improve in the near term.
- JB Hi-Fi Limited (ASX: JBH) has a short interest of 7.45%, which is down slightly week on week. This appears to be due to consumer spending concerns.
- Brainchip Holdings Ltd (ASX: BRN) has entered the top ten with a short interest of 7.4%. Short sellers appear to be targeting this struggling semiconductor company due to its lofty valuation and lack of revenue.
