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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) holds onto the top spot with short interest of 10.5%, which is up slightly week on week. Revenue margins and consumer spending concerns may be behind this.
- IDP Education Ltd (ASX: IEL) has 9.5% of its shares held short, which is down slightly week on week. Short sellers built a position in this language testing and student placement company after it lost its monopoly in Canada.
- Core Lithium Ltd (ASX: CXO) has short interest of 9.45%, which is up week on week again. A number of analysts believe that the market is overvaluing this lithium miner.
- Lendlease Group (ASX: LLC) has short interest of 8.2%, which is up week on week once again. Short sellers appear to be betting on this global property developer facing a tough year in FY 2024.
- AMA Group Ltd (ASX: AMA) has seen its short interest ease slightly to 7.9%. This struggling crash repair company has loans of ~$230 million drawn, which is double its current market capitalisation.
- Select Harvests Ltd (ASX: SHV) has 7.7% of its shares held short, which is up slightly since last week. In May, the almond producer posted a half-year loss of $96.2 million. Short sellers appear to believe the poor form could continue.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 7.65%, which is up week on week. This short interest appears to be due to concerns over the cost of living crisis and consumer spending.
- Temple & Webster Group Ltd (ASX: TPW) has 7.6% of its shares in the hands of short sellers, which is down week on week. This also appears to be due to consumer spending concerns.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest ease a touch to 7.3%. Short sellers may to be coming after this struggling semiconductor company due to its abject performance and lofty valuation.
- Breville Group Ltd (ASX: BRG) has returned to the top ten with short interest of 7%. Concerns about consumer spending appear to be why short sellers are targeting this appliance manufacturer.
