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) takes the crown as the most shorted ASX share for another week. This is despite its short interest reducing meaningfully week on week to 16.2%. Short sellers appear to believe the travel market recovery won’t be smooth sailing.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest edge higher to 13.6%. This betting technology company appears to have been targeted due to its lofty valuation and cash burn in an unforgiving investment environment.
- Nanosonics Ltd (ASX: NAN) has short interest of 12.3%, which is down slightly week on week. This short interest appears to relate to concerns over potential disruption and higher costs caused by this medical device company’s sales model transition in the United States.
- Polynovo Ltd (ASX: PNV) has seen its short interest ease to rise to 10.4%. This medical device company’s shares have just been dumped from the ASX 200 index.
- Webjet Limited (ASX: WEB) has short interest of 9.4%, which is down week on week. Short sellers continue to target this online travel agent despite management forecasting a big improvement in its performance in FY 2023.
- Appen Ltd (ASX: APX) has seen its short interest fall to 9.4%. It has been an eventful couple of weeks for this artificial intelligence data services company. Developments include a takeover collapse, a very poor trading update, and news that it has been booted out of the ASX 200 index.
- AMA Group Ltd (ASX: AMA) has 8.8% of its shares held short, which is down slightly week on week. There are concerns that this crash repair company’s balance sheet is in a precarious position and could require a recapitalisation.
- Block Inc (ASX: SQ2) has entered the top ten with short interest of 8.7%. This is largely in line with the short interest levels of its US listed shares.
- Kogan.com Ltd (ASX: KGN) has seen its short interest reduce to 8.7%. This ecommerce company has been targeted due to its poor inventory management, weakening margins, and rising competition from Amazon and others.
- Regis Resources Limited (ASX: RRL) has short interest of 8.6%, which is down week on week. Concerns over labour shortages, cost pressures, and lower grades have been weighing on its shares.
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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. has positions in and has recommended Appen Ltd, Betmakers Technology Group Ltd, Block, Inc., Kogan.com ltd, Nanosonics Limited, and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., 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 Scott Phillips.
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