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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) 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.
