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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) has returned to the top of the charts after its short interest rose to 15.3%. Short sellers are likely to have been disappointed to see its shares shoot higher last week after international border reopening plans were announced.
- Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.8%. Short sellers have been targeting this ecommerce company due to its continued underperformance and concerns over its inventory management and higher marketing spend.
- Zip Co Ltd (ASX: Z1P) has seen its short interest rise week on week to 10.6%. Buy now pay later shares have fallen out of favour with investors over the last few months and short sellers have been benefiting greatly.
- Webjet Limited (ASX: WEB) has short interest of 10%, which is up week on week. This online travel agent's shares are being targeted due to concerns over COVID disruptions. However, the border reopening sent its shares hurtling higher last week, much to the dismay of short sellers.
- Mesoblast limited (ASX: MSB) has short interest of 9.8%, which is up slightly week on week. This biotech has been targeted due to poor trial results, significant cash burn, and the loss of a major deal with Novartis.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 8.8%. The high multiples that this medical device company's shares trade on appear to have caught the eye of shorts. Particularly given its mixed performance.
- Betmakers Technology Group Ltd (ASX: BET) has 8.7% of its shares held short, which is up week on week again. The sky high multiples that this betting technology company's shares trade on could be behind this.
- Magellan Financial Group Ltd (ASX: MFG) has entered the top ten with short interest of 8.3%. The poor performance of its funds, ongoing funds outflows, and the temporary exit of its CIO are weighing heavily on sentiment.
- Block Inc (ASX: SQ2) has entered the top ten with short interest of 7.8%. This payments company's shares are under pressure amid valuation concerns and the prospect of rising rates.
- Temple & Webster Group Ltd (ASX: TPW) is back in the top ten with short interest of 7.7%. Concerns over higher marketing costs could be weighing on this online furniture retailer's shares.
