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 even though its short interest eased week on week to 11.3%. Short sellers may have concerns over revenue margin headwinds.
• Megaport Ltd (ASX: MP1) has seen its short interest jump to 10.2%. Slowing growth and the shock departure of its CEO has been weighing on this network as a service provider’s shares.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease again to 10.2%. Competition and cash burn concerns have been weighing on its shares.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is up week on week. Falling lithium prices seem to be behind this.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.9%, which is up week on week. Short sellers seem to be doubting Zip’s ability to achieve its profitability goals. Though, management appears confident it will get there as planned.
• Sayona Mining Ltd (ASX: SYA) has 8.9% of its shares held short, which is down week on week. Short sellers appear to believe the lithium industry is overvalued as a whole.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8.2%, which is down week on week. Cost blow outs at the Kathleen Valley Lithium Project and lithium price weakness are likely to be behind this.
• Brainchip Holdings Ltd (ASX: BRN) is back in the top ten with short interest of 7.6%. Short sellers don’t appear to believe this struggling semiconductor company warrants such a lofty valuation given its lack of revenue and intense competition from companies that spend billions on R&D each year.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest rise to 7.1%. This could be due to fears over the impact of the cost of living crisis on consumer spending.
• Nextdc Ltd (ASX: NXT) has short interest of 7.1%, which is up slightly week on week. This may be due to concerns that the tough economic environment could delay major contracts.

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

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why Corporate Travel Management, Kingsgate, Liontown, and Neuren shares are racing higher
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 3 ASX growth stocks down 40%-65% to buy now and hold
• Sayona Mining share price lifts on first saleable lithium production

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 Zip Co. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, Jb Hi-Fi, and Megaport. 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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