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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) remains the most shorted share on the ASX for another week after its short interest rose to 17.3%. Some traders appear to believe the market is too optimistic on the travel industry recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest surge to 16.6%. This betting technology company's shares have fallen heavily this year amid valuation and cash burn concerns.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.2%, which is down week on week. Uncertainty caused by a major change to this medical device company's sales model in the United States has put pressure on its shares.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 10.6%. This is despite the medical device company reporting heavy insider buying recently. Though, there is a lag with short seller data, so we may not know if short sellers have been spooked into closing positions by the insider buying until next week.
- Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.1%. Short sellers have been going after this ecommerce company due to its poor performance and rising competition from Amazon.
- EML Payments Ltd (ASX: EML) has seen its short interest remain flat at 10%. This payments company has become a target of short sellers after it downgraded its profit guidance following a tough third quarter. There are regulatory concerns also weighing on sentiment.
- Webjet Limited (ASX: WEB) has short interest of 9.6%, which is up week on week. This online travel agent is releasing its half year results later this week. Judging by the increase in short interest, short sellers aren't expecting a strong result or guidance.
- Appen Ltd (ASX: APX) has seen its short interest rise to 9.15%. There are concerns that Appen could be facing softening demand due to some companies taking parts of their machine learning in-house.
- AMA Group Ltd (ASX: AMA) has 9.1% of its shares held short, which is up week on week once again. There are concerns about this smash repair company's high debt load and dwindling cash balance.
- Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 8.9%. A disappointing underperformance in FY 2022 and less effective marketing for ecommerce companies (from privacy changes) have been weighing on sentiment and Redbubble's shares.
