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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 after its short interest rose to 16%. There are concerns that rising living costs and higher airfares could stifle the travel market recovery.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12%. This betting technology company's shares have risen 30% over the last month but short sellers aren't giving up. Its lofty valuation could be behind this.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.9%, which is down slightly week on week. Short sellers appear to be targeting this medical device company due to its sales model change in the US. There are fears that taking things in-house could disrupt its sales and lead to higher costs.
- Block Inc (ASX: SQ2) has short interest of 11.2%, which is up week on week. This mirrors the short interest of the payment company's shares on Wall Street. Although its shares are down ~60% in 2022, short sellers appear to believe they can keep falling.
- EML Payments Ltd (ASX: EML) has short interest of 10.1%, which is up week on week. Short sellers will have been pleased to see this payments company's shares crash lower last week following the surprise and sudden exit of its CEO.
- Lake Resources N.L. (ASX: LKE) has short interest of 9.6%, which is up week on week. Last week this lithium developer was hit with a short attack from J Capital. It claims that investors still have no evidence that the Lilac DLE technology works at scale. It also highlighted heavy insider selling and share issues to research firms.
- Regis Resources Limited (ASX: RRL) has short interest of 9%, which is up week on week. Short sellers have loaded up on this gold miner's shares despite its recent record quarter. They may believe this strong form will not be maintained.
- PolyNovo Ltd (ASX: PNV) has seen its short interest remain flat at 8.8%. Short sellers may be going after this medical device company due to its mixed performance and lofty valuation.
- Kogan.com Ltd (ASX: KGN) has seen its short interest rise to 8.55%. Short sellers appear to believe inventory mismanagement, supply chain headwinds, higher marketing costs, and increasing competition from Amazon will weigh on this ecommerce company's performance.
- Core Lithium Ltd (ASX: CXO) has entered the top ten with short interest of 8.3%. Short sellers may believe that lithium prices are going to fall materially and weigh on valuations.
