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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 its long run as the most shorted ASX share after its short interest rose gain to 14.2%. Short sellers appear to believe that the market is too optimistic on Flight Centre's revenue margins.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 12.7%. Valuation concerns may be weighing on this betting technology company's shares.
- Megaport Ltd (ASX: MP1) has seen its short interest remain at 9.8%. Short sellers will have been pleased to see this network as a service provider's shares crash last week after a disappointing quarterly update. Operational trends were far weaker than expected.
- Sayona Mining Ltd (ASX: SYA) has 9.2% of its shares held short, which is down week on week once again. Short sellers appear to be targeting Sayona and other lithium shares on the belief that lithium prices have peaked.
- Core Lithium Ltd (ASX: CXO) has short interest of 9%, which is down slightly week on week. Goldman Sachs believes this lithium developer's shares are vastly overvalued compared to peers.
- Liontown Resources Ltd (ASX: LTR) is another lithium share being targeted by short sellers. It has short interest of 7.8%, which is up week on week. Lithium price concerns and project cost blow outs may be behind this.
- Lake Resources N.L. (ASX: LKE) has 7.2% of its shares held short, which is down week on week. J Capital has gone public with why it is shorting this lithium developer. It has concerns over its DLE technology and project funding.
- ARB Corporation Limited (ASX: ARB) has entered the top ten with short interest of 6.9%. A soft start to FY 2023 and uncertainty in the US market appear to be behind this.
- Zip Co Ltd (ASX: ZIP) is back in the top ten with short interest of 6.9%. Short sellers may believe the market is being too optimistic on Zip's profitability target.
- Brainchip Holdings Ltd (ASX: BRN) has rejoined the top ten with short interest of 6.7%. Yet another disappointing quarterly performance from this meme stock appears to have given short sellers even more confidence in their bearish views.
