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 with short interest of 18%. Despite travel markets beginning to improve, short sellers aren’t willing to give up on this one.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12.6%. Short sellers will have been disappointed to see this betting technology company’s shares surge higher last week after revealing a major sports betting agreement.
- Nanosonics Ltd (ASX: NAN) has short interest of 12%, which is up strongly week on week. A major and potentially disruptive change to this infection prevention medical device company’s sales model in the United States has created significant uncertainty.
- Webjet Limited (ASX: WEB) has short interest of 10.4%, which is up sharply week on week. Short sellers aren’t giving up on this online travel company. They may believe the market is too bullish on its recovery.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.2%. Although this medical device company released a promising trading update earlier this month, short sellers haven’t been scared off. They may believe its recovery is temporary.
- EML Payments Ltd (ASX: EML) has seen its short interest rise remain flat at 9.5%. Short sellers will have been celebrating today when a profit guidance update sent this payments company’s shares crashing lower by over a third.
- Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 9.2%. Short sellers will have been pleased to see this buy now pay later provider’s shares crash to a new multi-year low last week following its update.
- Kogan.com Ltd (ASX: KGN) has seen its short interest bounce back to 9.1%. Concerns over its lack of organic sales growth, rising marketing costs, and inventory issues have been weighing on this online retailer’s shares.
- AMA Group Ltd (ASX: AMA) has 8.4% of its shares held short, which is up sharply week on week. Short sellers have been building up their positions since the crash repair company disappointed the market with a half year loss of $46.3 million.
- Mesoblast limited (ASX: MSB) has seen its short interest edge higher to 7.9%. Disappointing trial results and significant cash burn have been weighing on this biotech’s shares.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
- Why Chalice Mining, EML Payments, Mineral Resources, and South32 shares are tumbling
- Is the Zip share price set to sink below the $1 mark for the first time since 2018?
- Have ASX tech shares finally reached the bottom?
- ASX 200 stocks dive 2.4% in worst trading day since Ukraine crisis hit
- EML share price crashes 35% amid guidance cuts
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betmakers Technology Group Ltd, EML Payments, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended EML Payments, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/9MHyNng