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Once a 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 as the most shorted share after its short interest rose strongly week on week to 16.3%. Investors may have concerns over its large losses and the state of the travel market amid war in Ukraine and rising fuel prices.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.2%, which is up again week on week. Short sellers appear concerned by a major and sudden change in its sales model in the United States.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise again to 12%. The betting technology company's shares have lost almost a third of their value this year amid the de-rating of tech valuations.
- Zip Co Ltd (ASX: Z1P) has seen its short interest remain flat at 11.3%. Much to the delight of short sellers, this buy now pay later provider's shares crashed 22% last week following a capital raising.
- Kogan.com Ltd (ASX: KGN) has seen its short interest ease slightly to 10.4%. Short sellers have been targeting this ecommerce company due to its continued poor performance and concerns over rising marketing costs for online retailers.
- Mesoblast limited (ASX: MSB) has short interest of 9.8%, which is up slightly week on week. Poor trial results, significant cash burn, and the loss of a lucrative deal with Novartis have been weighing on sentiment.
- Webjet Limited (ASX: WEB) has short interest of 9.7%, which is flat week on week. Short sellers appear to believe the market is too optimistic on the travel market recovery.
- Polynovo Ltd (ASX: PNV) has seen its short interest remain flat at 9.3%. This medical device company hit a new 52-week low today, much to the delight of short sellers. Its underperformance and high multiples appear to be attracting shorts.
- Redbubble Ltd (ASX: RBL) has returned to the top ten with short interest of 9.2%. Changes to Apple's privacy settings have been making life hard for ecommerce companies like Redbubble.
- AMA Group Ltd (ASX: AMA) is back in the top ten with 8.7% of its shares held short. Last month this crash repair company reported a loss of $46.3 million for the first half of FY 2022. Its shares also hit a 52-week low today.
