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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:
- Core Lithium Ltd (ASX: CXO) has become the most shorted ASX share after its short interest increased week on week to 11.2%. A disappointing update regarding its production plans appears to have attracted short sellers.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 10%. Short sellers appear to have been closing their positions after the travel agent giant upgraded its earnings guidance for a second time.
- IDP Education Ltd (ASX: IEL) has 9.8% of its shares held short, which is up slightly week on week. Short sellers have been going after this language testing and student placement company since it lost its testing monopoly in Canada. This is expected to weigh on its earnings in the near term.
- Syrah Resources Ltd (ASX: SYR) has short interest of 9%, which is up materially week on week. Syrah's shares have come under pressure after it was forced to moderate its graphite production due to soft demand and weak prices.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8.1%, which is down week on week. Short sellers may believe the retailer is struggling because of the cost of living crisis.
- AMA Group Ltd (ASX: AMA) has seen its short interest remain flat at 8%. This crash repair company's poor performance and high debt load could be behind this short interest.
- Select Harvests Ltd (ASX: SHV) has 7.7% of its shares held short, which is flat week on week. Short sellers don't appear to believe this almond producer's poor form will improve any time soon.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest rise to 7.5%. This struggling semiconductor company's lack of revenue and big valuation appear to be behind this short interest.
- Lendlease Group (ASX: LLC) has short interest of 7.4%, which is down week on week again. Traders appear concerned that the global property developer could be struggling in the current environment.
- Lake Resources N.L. (ASX: LKE) has returned to the top ten with short interest of 7.3%. Short sellers aren't giving up on this struggling lithium developer despite its shares hitting a two-year low last week.
