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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 ASX share with short interest of 16.1%. With living costs rising there are concerns that consumer spending on leisure travel could suffer.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.3%, which is up week on week. Short sellers continue to target this medical device company amid concerns over disruptive sales model changes in the United States.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest reduce again to 11.8%. Valuation concerns appear to be behind this. The betting technology company's shares trade on sky high multiples.
- Block Inc (ASX: SQ2) has short interest of 10.3%, which is up week on week again. This mirrors the short interest of the payment company's shares on Wall Street.
- Regis Resources Limited (ASX: RRL) has short interest of 9.2%, which is up week on week. This short interest appears to have been driven by concerns over labour shortages, cost pressures, and lower grades.
- EML Payments Ltd (ASX: EML) has short interest of 8.9%, which is down week on week. A very poor third quarter trading update caught the eye of short sellers and has put significant pressure on the payments company's shares.
- Webjet Limited (ASX: WEB) has short interest of 8.1%, which is flat week on week. Concerns that cost of living pressures could stifle Webjet's recovery appear why short sellers are targeting the online travel agent.
- Mesoblast limited (ASX: MSB) has entered the top ten with short interest of 7.9%. Last month this biotechnology company was hit with a class action alleging that it mislead investors and failed to disclose material information over the deficiencies of clinical trials into treatments for COVID-19 and graft versus host disease in children.
- PointsBet Holdings Ltd (ASX: PBH) has 7.9% of its shares held short, which is down week on week. Much to the dismay of short sellers, this sports betting company's shares have been racing higher over the last couple of weeks thanks to news of a strategic investment.
- PolyNovo Ltd (ASX: PNV) has seen its short interest ease again to 7.9%. Short sellers appear to be losing interest in this medical device company. Some heavy insider buying may have spooked them.
