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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) stays as the most shorted ASX share with 15.5% of its shares held short. This was down slightly week on week. Flight Centre upgraded its guidance last week, much to the disappointment of short sellers.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rebound to 12%. Valuation concerns appear to be driving this high level of short interest.
- Nanosonics Ltd (ASX: NAN) has short interest of 11.6%, which is down slightly week on week once again. Last week, this infection prevention company's shares tumbled following the release of a business update.
- Block Inc (ASX: SQ2) has short interest of 11.5%, which is up slightly week on week once again. This payments company's shares have been hit hard this year as investors sell out of unprofitable tech stocks. Short sellers appear to believe they can fall further.
- Lake Resources N.L. (ASX: LKE) has short interest of 10.4%, which is up meaningfully week on week. Short interest appears to have been building since the sudden exit of its CEO and the short attack from J Capital.
- EML Payments Ltd (ASX: EML) has short interest of 9.5%, which is up week on week. Last week this payments company's shares sank deep into the red following a disappointing update on regulatory issues facing its European operations.
- Regis Resources Limited (ASX: RRL) has short interest of 9%, which is down slightly week on week. Short sellers have been targeting this gold miner's shares due to production issues.
- Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 8.3%. Some of the newer short sellers may have regrets about targeting this buy now pay later provider. Its shares more than doubled during July.
- PolyNovo Ltd (ASX: PNV) has seen its short interest ease to 8.2%. This medical device company's shares jumped at the end of last week after naming a new and experienced CEO.
- Kogan.com Ltd (ASX: KGN) has seen its short interest soften again to 8.2%. Short sellers will have been devastated to see this ecommerce company's shares shoot ~50% higher on Thursday last week following the release of a trading update. That update may have even caused a short squeeze judging by the volume of trades.
