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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 to be the most shorted ASX share despite its short interest easing to 15.8%. Short sellers will have been disappointed to see the travel agent's shares jump today following a guidance upgrade.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest soften to 11.9%. This appears to be due to valuation concerns. The betting technology company's shares trade on lofty multiples.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.7%, which is down slightly week on week again. Short sellers will be pleased to have seen this infection prevention company's shares tumble on Monday following a business update. There are ongoing concerns about a potential jump in costs relating to a sales model change.
- Block Inc (ASX: SQ2) has short interest of 11.4%, which is up slightly week on week again. There's also a similarly high level of short interest for the payments company's shares on Wall Street.
- Lake Resources N.L. (ASX: LKE) has short interest of 9.2%, which is down week on week. This month this lithium developer was hit with a short attack from J Capital. Prior to that, the company's CEO left with immediate effect, without comment, and sold all his shares.
- EML Payments Ltd (ASX: EML) has short interest of 9.1%, which is down meaningfully week on week. The short sellers that didn't close positions will have been celebrating today after the payments company's shares crashed lower following an update on regulatory issues facing its European operations.
- Regis Resources Limited (ASX: RRL) has short interest of 9.1%, which is up week on week. This gold miner's shares have been under-fire this year amid production issues.
- PolyNovo Ltd (ASX: PNV) has seen its short interest ease to 8.5%. One short seller previously revealed that it was targeting the medical device company's shares due to the belief that they have been valued incorrectly by the market.
- Kogan.com Ltd (ASX: KGN) has seen its short interest soften to 8.4%. Poor inventory management, supply chain headwinds, higher marketing costs, and increasing competition from Amazon are all weighing on sentiment.
- Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 8.1%. Short sellers don't appear confident that this buy now pay later provider will achieve its profitability targets.
