These are the 10 most shorted ASX shares

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) remains the most shorted share after its short interest rose to 15.45%. Short sellers aren’t giving up on this travel agent giant despite Australia’s borders reopening.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest surge to 11.3%. This may be due to the sky high multiples the betting technology company’s shares trade on and competitive pressures in the industry.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise week on week to 11.2%. Much to the delight of short sellers, this buy now pay later provider’s shares have fallen to a 52-week low this week after revealing a larger than expected loss during the first half. Concerns that Zip may need to raise capital are also weighing on sentiment.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.3%. This ecommerce company’s shares have been targeted due to concerns over its inventory management and higher marketing spend.
• Webjet Limited (ASX: WEB) has short interest of 9.9%, which is down slightly week on week. Once again, short sellers aren’t giving up on this online travel agent’s shares despite improving trading conditions.
• Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is down slightly week on week. Poor trial results, significant cash burn, and the loss of a major deal with Novartis have all been weighing on Mesoblast’s shares.
• Nanosonics Ltd (ASX: NAN) is back in the top ten with short interest of 9.6%. Short sellers will have been pleased to see this infection prevention company’s shares crash to a 52-week low this week after its results disappointed.
• Polynovo Ltd (ASX: PNV) has seen its short interest rise to 8.9%. This high level of short interest may be due to concerns over this medical device company’s mixed performance and the lofty multiples its shares trade on.
• Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 8.1%. Last week this ecommerce company reported an 18% reduction in half year revenue and a whopping 95% decline in EBIT.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 8%. Short sellers will have been pleased to see this online furniture retailer’s shares tumble since the release of its half year results.

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

More reading

• Opportunity? 5 ASX 200 shares that traded at 52-week lows today
• Why Nanosonics, Superloop, Uniti, and Zip shares are tumbling today
• ASX 200 (ASX:XJO) midday update: Coles and Cochlear impress, Nanosonics sinks
• Own Zip (ASX:Z1P) shares? Rumours are circulating the company may be set for a capital raise
• Nanosonics (ASX:NAN) share price sinks amid 45% half-on-half profit decline

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. owns and has recommended Betmakers Technology Group Ltd, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, Temple & Webster Group Ltd, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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