These are the 10 most shorted ASX shares this week

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 after its short interest rose to 11.7%. Revenue margin headwinds could be the reason for this.
• Core Lithium Ltd (ASX: CXO) has short interest of 10%, which is flat week on week. Concerns over falling lithium prices has been behind this. Though, M&A activity in the industry is likely to be making short sellers nervous.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.9%, which is down marginally week on week. This is despite the buy now pay later provider reiterating its profit targets last week.
• Liontown Resources Ltd (ASX: LTR) has short interest of 9.1%, which is up week on week. Short sellers may be regretting this one. Last week a takeover approach sent this lithium share rocketing higher.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 9.1%. Softening growth and the exit of its CEO and CFO last month seem to have caused concerns.
• Sayona Mining Ltd (ASX: SYA) has 8.5% of its shares held short, which is down week on week. Short sellers may also have some regrets with this lithium share after it recorded a strong gain last week.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest rise to 7.9%. Short sellers appear to believe that the cost of living crisis could impact consumer spending on household goods.
• Temple & Webster Group Ltd (ASX: TPW) has entered the top ten after its short interest jumped to 7.3%. This may be due to concerns that this online furniture retailer could be struggling in the current environment.
• Pointsbet Holdings Ltd (ASX: PBH) has short interest of 7.2%, which is up week on week. Competition and cash burn concerns may be why short sellers are targeting this sport betting company.
• Brainchip Holdings Ltd (ASX: BRN) has seen its short interest ease slightly to 7.2%. This is likely to be down to this semiconductor company’s ridiculous valuation on less revenue than a Sydney CBD café. It also faces competition from huge players that could easily acquire Brainchip if they thought it was a threat.

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

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More reading

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• These ASX 200 lithium shares could be takeover targets: Morgans
• These were the best performing ASX 200 shares in March
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Which ASX 200 lithium share has been a 10-bagger in two years?

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 Megaport, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, Jb Hi-Fi, Megaport, PointsBet, and Temple & Webster Group. 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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