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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) continues its long run as the most shorted ASX share with short interest of 10.3%, which is down slightly week on week. Last week, this travel agent giant upgraded its earnings guidance for a second time, much to the dismay of short sellers.
- Core Lithium Ltd (ASX: CXO) has short interest of 10%, which is flat week on week. This appears to have been driven by valuation concerns.
- IDP Education Ltd (ASX: IEL) has 9.6% of its shares held short, which is up slightly week on week. This language testing and student placement company's shares have come under attack since it lost its testing monopoly in Canada.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8.4%, which is up week on week. Short sellers appear to be betting on this retail giant struggling because of the cost of living crisis.
- AMA Group Ltd (ASX: AMA) has seen its short interest remain flat at 8%. Short sellers appear concerned by this crash repair company's high debt load and poor performance. The latter is being driven by labour shortages and inflationary pressures.
- Select Harvests Ltd (ASX: SHV) has 7.7% of its shares held short, which is flat week on week. This almond producer has been having a tough time in FY 2023 and short sellers appear to believe things could still get worse.
- Lendlease Group (ASX: LLC) has short interest of 7.5%, which is down week on week again. Short sellers seem to be betting on a weak full-year result from this global property developer next month.
- Syrah Resources Ltd (ASX: SYR) has short interest of 7.4%, which is up week on week. Syrah is currently moderating its graphite production due to soft demand and weak prices.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest ease a touch to 7.4%. Short sellers appear to be betting on another shocking quarterly update from this struggling semiconductor company this month.
- Temple & Webster Group Ltd (ASX: TPW) has 7% of its shares in the hands of short sellers, which is down week on week. Concerns over the outlook for consumer spending may be behind this.
