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) continues to be the most shorted ASX share despite its short interest easing to 15.6%. There are concerns that higher airfares and rising living costs could impact consumer spending on leisure travel.
• Nanosonics Ltd (ASX: NAN) has short interest of 12.3%, which is flat week on week. This medical device company’s shares have come under pressure amid concerns over a major and disruptive sales model change in the key United States market.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 11.8%. Short sellers aren’t giving up on this betting technology company despite it recently announcing a share buyback.
• Block Inc (ASX: SQ2) has short interest of 10%, which is down slightly week on week. This mirrors the short interest of the payment company’s shares on Wall Street.
• Lake Resources N.L. (ASX: LKE) has entered the top ten with short interest of 8.9%. The sudden exit of the lithium developer’s CEO without comment appears to have spooked the market.
• PolyNovo Ltd (ASX: PNV) has seen its short interest rise to 8.8%. This medical device company’s mixed performance over the last 12 months appears to be behind this.
• EML Payments Ltd (ASX: EML) has short interest of 8.6%, which is down week on week. Short sellers appear to believe this payments company’s underperformance in the third quarter could continue into the fourth.
• Regis Resources Limited (ASX: RRL) has short interest of 8.5%, which is down week on week. Short sellers will have been disappointed to see this gold miner’s shares surge higher last week following a record quarter.
• Kogan.com Ltd (ASX: KGN) is back in the top ten with short interest of 8.4%. Inventory mismanagement, supply chain headwinds, higher marketing costs, and Amazon’s growing presence in Australia appear to be behind this short interest.
• Webjet Limited (ASX: WEB) has short interest of 8%, which is down slightly week on week. Cost of living pressures appear to have investors concerned that the travel market recovery could take longer than expected.

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

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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 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, Flight Centre Travel Group Limited, and Webjet Ltd. 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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