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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) continues to be the most shorted ASX share with short interest of 18%. Despite travel markets beginning to improve, short sellers aren't willing to give up on this one.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12.6%. Short sellers will have been disappointed to see this betting technology company's shares surge higher last week after revealing a major sports betting agreement.
- Nanosonics Ltd (ASX: NAN) has short interest of 12%, which is up strongly week on week. A major and potentially disruptive change to this infection prevention medical device company's sales model in the United States has created significant uncertainty.
- Webjet Limited (ASX: WEB) has short interest of 10.4%, which is up sharply week on week. Short sellers aren't giving up on this online travel company. They may believe the market is too bullish on its recovery.
- Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.2%. Although this medical device company released a promising trading update earlier this month, short sellers haven't been scared off. They may believe its recovery is temporary.
- EML Payments Ltd (ASX: EML) has seen its short interest rise remain flat at 9.5%. Short sellers will have been celebrating today when a profit guidance update sent this payments company's shares crashing lower by over a third.
- Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 9.2%. Short sellers will have been pleased to see this buy now pay later provider's shares crash to a new multi-year low last week following its update.
- Kogan.com Ltd (ASX: KGN) has seen its short interest bounce back to 9.1%. Concerns over its lack of organic sales growth, rising marketing costs, and inventory issues have been weighing on this online retailer's shares.
- AMA Group Ltd (ASX: AMA) has 8.4% of its shares held short, which is up sharply week on week. Short sellers have been building up their positions since the crash repair company disappointed the market with a half year loss of $46.3 million.
- Mesoblast limited (ASX: MSB) has seen its short interest edge higher to 7.9%. Disappointing trial results and significant cash burn have been weighing on this biotech's shares.
