At the start of each 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 its long run as the most shorted share on the Australian share market after its short interest rose to 15.1%. Short sellers seem to believe that the market is too bullish on the travel market recovery due to rising living costs.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 14.5%. This betting technology company's shares are down 60% in 2022 but short sellers appear to believe they can keep falling. In other news, last week it was revealed that major shareholder, Tom Waterhouse, sold $11 million worth of shares in recent weeks
- Block Inc (ASX: SQ2) has seen its short interest rise to 11.8%. Investors continue to target this payments company amid concerns that a global recession could slow its growth.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest jump to 10.7%. There are fears that cost inflation could be weighing on this pizza chain operator's performance.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 10.6%. Short sellers will have been pleased to see this tech share crash lower last week after the release of a soft quarterly update.
- Perpetual Limited (ASX: PPT) has seen its short interest jump to 10%. A number of fund managers have been under pressure this year amid tough trading conditions.
- Lake Resources N.L. (ASX: LKE) has short interest of 9.8%, which is down slightly week on week. Short sellers have major doubts over this lithium developer's unproven DLE technology.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.3%, which is down week on week. This infection prevention company's disruptive business model change in the key US market is causing concerns.
- Breville Group Ltd (ASX: BRG) has seen its short interest rise to 8.1%. Investors may be concerned that the uncertain economic backdrop could impact consumer spending on kitchen goods.
- Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 7.8%. Doubts over this buy now pay later provider's profitability targets continue to weigh on its shares.
