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:

• Betmakers Technology Group Ltd (ASX: BET) has become the most shorted share on the Australian share market despite its short interest easing slightly to 11.8%. This high level of short interest appears to have been driven by competition and cash burn concerns.
• Flight Centre Travel Group Ltd (ASX: FLT) saw its short interest fall meaningfully to 11.4%. With its shares up strongly this year, some short sellers appear to have been closing positions in a hurry.
• Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is up week on week. This seems to have been driven by fears that lithium prices have now peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is flat week on week. Continued weakness in spot lithium prices appears to have spooked investors.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 9.4%. This network as a service provider appears to have been targeted after reporting softening operating trends with its results.
• Zip Co Ltd (ASX: ZIP) has short interest of 7.7%, which is up week on week again. This buy now pay later provider’s shares took a tumble last week following the release of its half-year results. Short sellers appear to believe it will struggle to achieve its profitability goals.
• Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down week on week. Major cost blow outs at the Kathleen Valley Lithium Project have been weighing on sentiment.
• Pointsbet Holdings Ltd (ASX: PBH) has 7.1% of its shares held short, which is down week on week. This appears to be due to competition and cash burn concerns.
• Lake Resources N.L. (ASX: LKE) has 6.9 % of its shares held short, which is down sharply week on week. Lake Resources has come under-fire due to doubts over its technology and project funding.
• Vulcan Energy Resources Ltd (ASX: VUL) is the fifth lithium share in the top ten with short interest of 6.9%. With lithium prices tipped to fall materially over the next 18 months, there may be concerns that this Germany-based developer could miss out on the sky high prices.

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

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• Here are the top 10 ASX 200 shares today
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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 Betmakers Technology Group, Megaport, PointsBet, and Zip Co. 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.

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