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 shares with short interest of 10.45%, which is down slightly week on week. Short sellers appear convinced the market has got it wrong on this travel agent giant.
- Core Lithium Ltd (ASX: CXO) has short interest of 10%, which is up week on week yet again. Valuation concerns appear to be why short sellers are targeting this lithium miner.
- IDP Education Ltd (ASX: IEL) has 9.4% of its shares held short, which is down slightly week on week. Short sellers have been targeting this language testing and student placement company after it lost its lucrative testing monopoly in Canada.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8.2%, which is up sharply week on week. Short sellers appear to believe the cost of living crisis will weigh heavily on its sales.
- AMA Group Ltd (ASX: AMA) has seen its short interest rise to 8%. This crash repair company's balance sheet is in a precarious position.
- Lendlease Group (ASX: LLC) has short interest of 7.9%, which is down week on week. During the first half of FY 2023, this global property developer reported a statutory loss of $141 million.
- Select Harvests Ltd (ASX: SHV) has 7.7% of its shares held short, which is flat week on week. It has also been struggling this year. In May, the almond producer posted a half-year loss of $96.2 million.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest rise to 7.6%. This struggling semiconductor company still has a lofty valuation despite generating less revenue than some cafes.
- Temple & Webster Group Ltd (ASX: TPW) has 7.6% of its shares in the hands of short sellers, which is flat week on week. This appears to be due to concerns over consumer spending.
- Syrah Resources Ltd (ASX: SYR) has returned to the top ten with short interest of 7.1%. Earlier this year, Syrah announced plans to moderate its graphite production until demand conditions improve.
