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 despite its short interest easing to 15.8%. Short sellers will have been disappointed to see the travel agent’s shares jump today following a guidance upgrade.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest soften to 11.9%. This appears to be due to valuation concerns. The betting technology company’s shares trade on lofty multiples.
• Nanosonics Ltd (ASX: NAN) has short interest of 11.7%, which is down slightly week on week again. Short sellers will be pleased to have seen this infection prevention company’s shares tumble on Monday following a business update. There are ongoing concerns about a potential jump in costs relating to a sales model change.
• Block Inc (ASX: SQ2) has short interest of 11.4%, which is up slightly week on week again. There’s also a similarly high level of short interest for the payments company’s shares on Wall Street.
• Lake Resources N.L. (ASX: LKE) has short interest of 9.2%, which is down week on week. This month this lithium developer was hit with a short attack from J Capital. Prior to that, the company’s CEO left with immediate effect, without comment, and sold all his shares.
• EML Payments Ltd (ASX: EML) has short interest of 9.1%, which is down meaningfully week on week. The short sellers that didn’t close positions will have been celebrating today after the payments company’s shares crashed lower following an update on regulatory issues facing its European operations.
• Regis Resources Limited (ASX: RRL) has short interest of 9.1%, which is up week on week. This gold miner’s shares have been under-fire this year amid production issues.
• PolyNovo Ltd (ASX: PNV) has seen its short interest ease to 8.5%. One short seller previously revealed that it was targeting the medical device company’s shares due to the belief that they have been valued incorrectly by the market.
• Kogan.com Ltd (ASX: KGN) has seen its short interest soften to 8.4%. Poor inventory management, supply chain headwinds, higher marketing costs, and increasing competition from Amazon are all weighing on sentiment.
• Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 8.1%. Short sellers don’t appear confident that this buy now pay later provider will achieve its profitability targets.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX 200 travel shares having such a stellar session?
• Why are ASX 200 tech shares having such a lousy start to the week?
• Swings and roundabouts: What’s with the Zip share price today?
• ASX 200 midday update: EML crashes, Flight Centre jumps on guidance upgrade
• EML share price crashes 22% on Ireland warning

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 Betmakers Technology Group Ltd, Block, Inc., EML Payments, Kogan.com ltd, Nanosonics Limited, and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/2CAFryt

• Stock Market