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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 share on the ASX after its short interest rose to 15.5%. Concerns over the travel market recovery saw Flight Centre's shares sink to a 52-week low last week.
- Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 13.9%. This betting technology company's shares appear to have been targeted due to their lofty valuation and its cash burn.
- Block Inc (ASX: SQ2) has seen its short interest rise slightly to 10.6%. Short sellers may be going after this payments company due to tech sector weakness, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry.
- Lake Resources N.L. (ASX: LKE) has short interest of 10.4%, which is up week on week. A short report from a renowned short seller reveals that it is targeting the company largely due to doubts over its DLE technology.
- Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.8%. Valuation concerns and significant weakness in the tech sector are likely to be behind this short interest.
- Nanosonics Ltd (ASX: NAN) has short interest of 8.1%, which is up slightly week on week. Short sellers continue to target this infection prevention company amid concerns over its disruptive business model change in the key US market.
- Breville Group Ltd (ASX: BRG) has seen its short interest rise to 7.8%. This may be due to concerns over what the uncertain economic backdrop could mean for consumer spending.
- Inghams Group Ltd (ASX: ING) has short interest of 7.8%, which is down slightly week on week. Concerns over higher input costs may be behind this short interest.
- Zip Co Ltd (ASX: ZIP) has seen its short interest rebound slightly to 7.8%. Doubts over the company's profitability targets have been weighing on sentiment this year.
- Perpetual Limited (ASX: PPT) has entered the top ten with short interest of 7.6%. This fund manager's shares have dropped 36% in 2022. It appears as though short sellers see more pain ahead.
