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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 as the most shorted ASX share with short interest of 14.7%, which is up week on week. Short sellers may believe that investors are too optimistic about Flight Centre's recovery from the pandemic. Particularly given revenue margin pressures.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rebound to 13%. This betting technology company's shares have been crushed over the last 12 months, but short sellers don't appear to believe they have bottomed yet.
- Perpetual Limited (ASX: PPT) has 12.9% of its shares held short, which is up week on week. The fund management industry is going through a difficult period right now as rates rise.
- Megaport Ltd (ASX: MP1) has seen its short interest ease slightly to 11.1%. This network as a service operator's shares have come under pressure in recent months amid concerns over the capital intensive nature of its business and its cash flow generation.
- Sayona Mining Ltd (ASX: SYA) has 10.5% of its shares held short, which is up week on week. Short sellers may be targeting Sayona Mining due to concerns that lithium prices could have peaked.
- Core Lithium Ltd (ASX: CXO) has short interest of 8.4%, which is flat since last week. Production delays and falling lithium prices may be behind this.
- Breville Group Ltd (ASX: BRG) has seen its short interest edge lower to 7.4%. Short sellers may be going after this appliance manufacturer due to fears that consumer spending on household goods could soften in 2023 due to housing market weakness and the cost of living crisis.
- Zip Co Ltd (ASX: ZIP) has seen its short interest remain flat at 7.4%. This high level of short interest may have been driven by concerns over Zip's high debt and doubts over its ability to become profitable in the near term.
- Lake Resources N.L. (ASX: LKE) has short interest of 7.2%, which is down week on week. One short seller, J Capital, is alleging that this lithium developer is having issues producing battery grade lithium at scale.
- Chalice Mining Ltd (ASX: CHN) has seen its short interest ease to 7.1%. Short sellers may be targeting Chalice due to delays to the mineral exploration company's scoping study.
