These are the 10 most shorted ASX shares

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) remains the most shorted ASX share by some distance after its short interest rose to 13.9%. This may have been driven by concerns over ongoing revenue margin pressures.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 12.7%. Much to the delight of short sellers, this betting technology company’s shares are trading within a whisker of a 52-week low.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 9.8%. Short sellers will be disappointed to learn that the network as a service provider’s shares are up 20% so far this month.
• Sayona Mining Ltd (ASX: SYA) has 9.6% of its shares held short, which is down week on week. This appears to be due to concerns that lithium prices have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.2%, which is down slightly since last week. Once again, short sellers appear to believe that Core Lithium could miss out on the sky high lithium prices being commanded today.
• Lake Resources N.L. (ASX: LKE) has 7.6% of its shares held short, which is flat week on week. J Capital’s short report reveals that it is targeting the lithium developer due to concerns over its technology and project funding.
• Liontown Resources Ltd (ASX: LTR) is yet another lithium share in the top ten with short interest of 7.3%. Concerns over lithium prices and project costs may be behind this. The latter could mean a capital raising is required in the near future.
• Breville Group Ltd (ASX: BRG) has seen its short interest ease to 7%. There are fears that demand for this appliance manufacturer’s production could soften notably this year.
• NextDC Ltd (ASX: NXT) has short interest of 6.8%, which is down week on week. Balance sheet concerns and Asian expansion uncertainty may be behind this.
• Pointsbet Holdings Ltd (ASX: PBH) has short interest of 6.8%, which is up slightly since last week. Short sellers don’t appear confident that this sports betting company will turn a profit any time soon due to intense competition and significant marketing costs.

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

• 4 ASX All Ords shares insiders have been buying up in January
• Core Lithium share price marches higher as key quarterly milestones achieved
• Add some oomph to your portfolio with these ASX growth shares: analysts
• What’s with ASX 200 lithium shares today?
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Megaport, and PointsBet. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, Megaport, and PointsBet. 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/xjDI4kO