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 despite its short interest easing to 11.8%. Revenue margin headwinds may be causing concerns.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 11.2%. This may be due to competition and cash burn concerns.
• Sayona Mining Ltd (ASX: SYA) has 10.4% of its shares held short, which is down slightly week on week. Falling lithium prices have been weighing on the sector.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.7%, which is down week on week. The sustained weakness in spot lithium prices appears to be spooking investors.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.3%, which is up week on week. This may be down to short sellers doubting Zip's ability to achieve its profitability goals.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 9%. Short sellers will have been pleased to see this network as a service provider's shares sink last week after the shock exit of its CEO.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8.5%, which is up week on week again. This appears to be due to major cost blow outs at the Kathleen Valley Lithium Project and lithium price weakness.
• Pointsbet Holdings Ltd (ASX: PBH) has returned to the top ten with short interest of 7.2%. Concerns about the sports betting company's cash burn could be behind this.
• JB Hi-Fi Limited (ASX: JBH) has arrived in the top ten with 7% of its shares held short. This may be due to fears over the impact of the cost of living crisis on consumer spending.
• Nextdc Ltd (ASX: NXT) has also entered the top ten with short interest of 6.8%. There may be fears that the economic environment could delay major contracts for this data centre operator.

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

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Red Leaf Securities chief executive John Athanasiou gives his thoughts on the ASX shares that are savagely discounted at the moment.

Cut or keep?

The Motley Fool: Let's examine three ASX shares that have been devastated this year, and see if you think each of these is now a bargain buy or a value trap.

The first one is Megaport Ltd (ASX: MP1), which has plunged almost 60% over the past year.

John Athanasiou: It's down quite significantly and it's one of the most shorted stocks on the ASX, Megaport. They've got a short interest of roughly 9%. 

This network provider, they appear to be targeted by these shorters because they've got operating issues, it seems. So I would call it for now a value trap, even though I do like the tech sector. There's no rush into it right now.

MF: Fair enough. Maybe you'd consider it if it got even cheaper?

JA: I would definitely consider it if it gets cheaper. Absolutely, yeah.

MF: The next one is Poseidon Nickel Ltd (ASX: POS). It's also down about 60% over the past 12 months. Your thoughts?

JA: In relation to Poseidon Nickel, even though I do like my small to micro-cap stocks, I would be a little bit cautious and wait for their Black Swan project to restart before getting involved in that one. 

I am bullish on nickel prices, but at this stage, nickel prices have fallen a fair bit. They're beginning to recover. But I think it'd be a more cautious approach and wait until that Black Swan project restarts.

MF: There's probably other producers that are already in production mode, aren't there?

JA: Exactly. So there's other opportunities out there. And if you want exposure to the resource, then you can go to the majors as well.

MF: The third one is Dusk Group Ltd (ASX: DSK), which is a retailer down about 39% over the past year. What do you reckon?

JA: Discretionary retailers had a real rough time and Dusk is no different. 

The RBA rate [rises] are really starting to bite on consumer spending. I just don't see consumers rushing out to buy candles no matter how good they smell right now. 

They did mention their online sales are decreasing and the CEO, Peter King, is trying to offset this by opening six new stores. Now obviously you'd imagine that'll impact margins, opening new stores and the cost associated with bricks-and-mortar. 

Even though we're bullish on the market, we're avoiding discretionary spending because it's only now we're seeing the real world impact of cash rates rising. 

There will be a time to buy Dusk, but I don't think it's right now. Maybe towards the end of the year or early next year, you'll be looking at discretionary retail stocks.

The ASX share for a comfortable night's sleep

MF: If the market closed tomorrow for four years, which stock would you want to hold?

JA: Well, four years is a long time not to have any information. So in light of that, I'd have to go conservative. I'm looking at Commonwealth Bank of Australia (ASX: CBA). 

They pay you a decent dividend, 4%. They essentially grow with the Australian economy and they're going to be around in four years.

The post 3 ASX shares to avoid like the plague (and one to buy for the next 4 years): expert appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 7.5% to 55 cents. Investors appear to have been taking profit following a strong gain on Monday in response to the launch of the new Akida platform. The old platform doesn't appear to have been cutting it for customers, so the company has designed the new one in line with requests. In light of this, if its sales don't jump in the coming quarters, it could be a very bad sign.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is down 1.5% to $7.35. Investors have been selling this rare earths producer's shares in recent sessions amid concerns over comments out of Tesla. The electric vehicle giant has announced plans to shift away from using rare earths in its cars in the near future. The Lynas share price is now down 11% since this time last week.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 14% to $4.95. This has been driven by the surprise resignation of the network services provider's CEO this morning. Rather ominously, Vincent English will be leaving with immediate effect and without an explanation. A global search is now commencing.

Universal Store Holdings Ltd (ASX: UNI)

The Universal Store share price is down almost 4% to $5.29. This decline is attributable to the retailer's shares going ex-dividend on Tuesday for its interim dividend. Eligible shareholders can now look forward to receiving Universal Store's 14 cents per share fully franked dividend later this month on 29 March.

The post Why Brainchip, Lynas, Megaport, and Universal Store shares are dropping today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is having a bit of a slow day so far this Tuesday. At the time of writing, the ASX 200 has slumped by 0.15%, dragging the Index down to around 7,317 points. But that's nothing compared to the woes of the Megaport Ltd (ASX: MP1) share price.

ASX 200 tech share Megaport is having a shocker today, no way around it. The Megaport share price closed at $5.74 yesterday. But the company opened at $5.50 this morning and has fallen a nasty 10.8% so far, down to just $5.12 a share. Ouch.

So what's going on here that has elicited such a dramatic slump in the value of Megaport shares this Tuesday?

Well, it appears this share price slump has been sparked by some news out of the company today. In an "executive management update" released to the markets this morning before open, Megaport has announced that none other than its CEO, Vincent English, has tendered his resignation, effective immediately.

Megaport share price tanks after CEO's abrupt departure

In the ASX statement, Megaport founder and chair, Bevan Slattery, had this to say:

Vincent has provided outstanding leadership as CEO of Megaport for the past six years, leading the business through its scale up and scale out transformation.

Vincent has been responsible for driving the vision of the Company through a period of incredible growth and for creating a legacy which sets the Company up for accelerated revenue growth and operational success in the future.

No other reasons were given for English's rather abrupt departure.

Slattery will now act as interim CEO while Megaport commences a "global search" for its next leader. English will remain "available" at Megaport until 30 April to "advise and assist" the company with the transition.

English might get some heart from the Megaport share price's reaction to the news of his departure — investors clearly aren't thrilled. Although this might also be a consequence of the somewhat rushed nature of this development.

But the Megaport share price has been on struggle street for a while regardless. The company has lost almost 15% year to date in 2023 so far, as well as a painful 60% or so over the past 12 months:

Megaport shares are also down more than 75% from their all-time high above $21 a share that we saw back in late 2021.

The post Megaport share price tumbles 10% on CEO resignation appeared first on The Motley Fool Australia.

It's been a very positive start to the trading week so far this Monday for the S&P/ASX 200 Index (ASX: XJO). At this point of the trading day, the ASX 200 has gained a healthy 0.8%, putting the index at just over 7,340 points. But ASX 200 tech stocks like Xero Limited (ASX: XRO) are putting that gain to shame. 

The ASX 200 tech sector is currently leading the market in terms of gains. And the top ASX 200 gainers today are almost all tech shares. Xero is in the vanguard here, recording a very pleasing gain of 4.88% so far this session to $79.31 a share:

But it's not just Xero. Block Inc (ASX: SQ2) has notched a 5.4% rise to $120.42 a share. Megaport Ltd (ASX: MP1) is just behind with a 5.1% gain to $5.78 a share. WiseTech Global Ltd (ASX: WTC) has just hit a new record high. And Brainchip Holdings Ltd (ASX: BRN) has rocketed by a whopping 17.65% to 60 cents a share.

So what's going on with ASX 200 tech stocks today that have yielded such stellar performances?

Why are ASX 200 tech stocks on fire this Monday?

Well, Brainchiop has had some specific developments which seem to be boosting the company's share price. As we covered this morning, Brainchip has announced the launch of its second-generation Akida platform, which seems to be getting investors hot under the collar.

But apart from that, there are no other specific announcements from these ASX 200 tech stocks that seem to be a factor here.

As such, we can probably thank the performance of the US tech markets on Friday night (our time) for the strong start to the week that the tech sector is currently enjoying.

The ASX is usually quite receptive to the movements of the US markets, given their dominance of global financial markets. If US shares have a good run, it's unusual not to see ASX shares follow suit (and vice-versa). And ASX 200 tech stocks seem to be particularly sensitive to the movements of their American counterparts.

Last Friday, the tech-heavy NASDAQ-100 Index (NASDAQ: NDX) had an exceptionally strong session, rising by 2.04% by the end of the trading day. US shares like Amazon, Apple, Microsoft and Tesla all shone, with Amazon, Apple and Tesla rising by more than 3% each. It was a similar story with other prominent US tech shares like Adobe, PayPal and Intuit.

So given the magnitude of these gains enjoyed by US tech investors last week, ASX 200 tech stocks were always going to have a strong day back across the Pacific.

The post Why are ASX 200 tech stocks like Xero having such a stellar start to the week? appeared first on The Motley Fool Australia.

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 chart after its short interest rose to 12%. Short sellers don't appear to be giving up on Flight Centre despite its return to form in FY 2023. Revenue margin headwinds may be a cause for concern.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 11.6%. Competition and cash burn concerns could be weighing on this betting technology company's shares.
• Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is flat week on week. There are fears that lithium prices have now peaked and are about to decline materially.
• Core Lithium Ltd (ASX: CXO) has short interest of 10.1%, which is up week on week. As with Sayona Mining, continued weakness in spot lithium prices appear to have spooked investors.
• Megaport Ltd (ASX: MP1) has seen its short interest fall again to 9.3%. Short sellers have been targeting this network as a service provider after it reported softening operating trends with its results.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.1%, which is up strongly week on week. Short sellers appear to be doubting this buy now pay later provider's ability to achieve its profitability goals.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8.1%, which is up week on week. Concerns over material cost blow outs at the Kathleen Valley Lithium Project have been weighing on sentiment.
• City Chic Collective Ltd (ASX: CCX) has jumped into the top ten with short interest of 7.3%. This plus sized fashion retailer's abject performance and inventory management are likely to be behind this short interest.
• Lake Resources N.L. (ASX: LKE) has 6.9 % of its shares held short, which is flat week on week. Doubts over this lithium developer's technology and project funding are reasons why one short seller is targeting Lake.
• Vulcan Energy Resources Ltd (ASX: VUL) has short interest of 6.8%, which is down slightly week on week. This also appears to be down to lithium prices being tipped to fall materially in the next 18 months.

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

Certainly 2023 has brought some relief for ASX technology and growth shares, but most are still well down on what they were 15 months ago.

The S&P/ASX All Technology Index (ASX: XTX), to demonstrate, is still about one-third lower than where it was in November 2021.

That's despite climbing up 10.5% since the new year.

Shaw and Partners portfolio manager James Gerrish, in his Market Matters newsletter, set about finding a well beaten-up stock that might be worth picking up at a heavy discount right now.

"Statistically, buying market 'dogs' is NOT a winner's game, but there is occasionally a diamond to be found in the rough."

Buy this one… but at the right price

One S&P/ASX 200 Index (ASX: XJO) tech stock that's especially had a brutal time is virtual network provider Megaport Ltd (ASX: MP1).

The share price has now lost an eye-watering 74% since the November 2021 peak.

And it hasn't even participated in the recent tech rally, actually losing 8.5% year to date. 

Gerrish said its recent financial update was to blame.

"Megaport has been sold off following a disappointing result, with the main issue coming from slowing growth with the number of ports being added simply not enough to justify its $880 million market capitalisation."

Megaport shares still have a high level of interest from short sellers, meaning many professional investors are expecting further falls.

A potential shortage of working capital, according to Gerrish, is behind the pessimism.

"A large driver behind the large 9.2% short interest comes from logical concerns around cash burn and the subsequent potential need to raise equity."

However, he would pick up Megaport shares at the right price.

"We would like Megaport under $5, especially if it were after a capital raise," said Gerrish.

"Market Matters believes Megaport is an aggressive buy into weakness."

The stock closed Friday at $5.51.

He's not alone in the potential for a bargain in Megaport. According to CMC Markets, eight out of 14 analysts currently covering the stock reckon it's a strong buy.

The post Buy this punished ASX 200 tech stock when it's forced into a capital raise: expert appeared first on The Motley Fool Australia.

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:

• Betmakers Technology Group Ltd (ASX: BET) has become the most shorted share on the Australian share market despite its short interest easing slightly to 11.8%. This high level of short interest appears to have been driven by competition and cash burn concerns.
• Flight Centre Travel Group Ltd (ASX: FLT) saw its short interest fall meaningfully to 11.4%. With its shares up strongly this year, some short sellers appear to have been closing positions in a hurry.
• Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is up week on week. This seems to have been driven by fears that lithium prices have now peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is flat week on week. Continued weakness in spot lithium prices appears to have spooked investors.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 9.4%. This network as a service provider appears to have been targeted after reporting softening operating trends with its results.
• Zip Co Ltd (ASX: ZIP) has short interest of 7.7%, which is up week on week again. This buy now pay later provider's shares took a tumble last week following the release of its half-year results. Short sellers appear to believe it will struggle to achieve its profitability goals.
• Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down week on week. Major cost blow outs at the Kathleen Valley Lithium Project have been weighing on sentiment.
• Pointsbet Holdings Ltd (ASX: PBH) has 7.1% of its shares held short, which is down week on week. This appears to be due to competition and cash burn concerns.
• Lake Resources N.L. (ASX: LKE) has 6.9 % of its shares held short, which is down sharply week on week. Lake Resources has come under-fire due to doubts over its technology and project funding.
• Vulcan Energy Resources Ltd (ASX: VUL) is the fifth lithium share in the top ten with short interest of 6.9%. With lithium prices tipped to fall materially over the next 18 months, there may be concerns that this Germany-based developer could miss out on the sky high prices.

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

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 its long run as the most shorted ASX share after its short interest rose to 12.8%. Weak revenue margins appear to be a concern for investors.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest reduce to 11.9%. Competition and cash burn concerns seem to be weighing on this betting technology company's shares.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 10.2%. This network as a service provider's slowing growth may have attracted short sellers.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is up week on week. Continued weakness in spot lithium prices has been weighing on investor sentiment.
• Sayona Mining Ltd (ASX: SYA) has 9.5% of its shares held short, which is up week on week. This also appears to have been driven by fears that lithium prices have peaked.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8%, which is up week on week. As well as lithium price concerns, cost blow outs at the Kathleen Valley Lithium Project have caught the eye of short sellers.
• Lake Resources N.L. (ASX: LKE) is the fourth lithium share in the top ten with 7.8% of its shares held short, which is up week on week. A well-known short seller is targeting Lake Resources due to doubts over its technology and project funding.
• Zip Co Ltd (ASX: ZIP) has short interest of 7.4%, which is up strongly week on week. Concerns over major regulatory changes could be partly behind this high level of short interest.
• Pointsbet Holdings Ltd (ASX: PBH) has 7.3% of its shares held short, which is flat week on week. As with Betmakers, competition and cash burn concerns appear to be behind this.
• NextDC Ltd (ASX: NXT) has short interest of 7.1%. This may be due to concerns that economic conditions could weigh on this data centre operator's performance.

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

The S&P/ASX 200 Index (ASX: XJO) bounced back with a bang on Thursday, rising 0.79% to close at 7,410.3 points.

It came amid the release of the Australian Bureau of Statistics' latest employment data, finding unemployment rose to 3.7% in January. That's likely good news for those wishing inflation to ease.  

Leading the market higher today was the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ). The sector leapt 2.7% today.

It was also a good day for S&P/ASX 200 Information Technology Index (ASX: XIJ) stocks – the tech sector rose 2.7%.

However, fans of ASX 200 energy shares were likely left disappointed. The S&P/ASX 200 Energy Index (ASX: XEJ) slumped 0.7% as coal shares weighed amid earnings from Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC).

The coal producers also responded to the NSW Government's price cap and coal reservation policy today.

So, with all that in mind, let's take a look at the 10 shares that outperformed all others on Thursday.

Top 10 ASX 200 shares countdown

Today's biggest gain on the ASX 200 came from Orora Ltd (ASX: ORA) shares. They surged 15% to close at $3.33 on the back of the company's first-half earnings.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

ASX 200 tech shares are on fire today, making the broader market's gains look insignificant. Just take leading ASX 200 tech share Xero. The Xero share price has jumped by 3.5% so far today to $81.94 a share.

It's not just Xero though. Most ASX 200 tech shares are on fire today. Block Inc (ASX: SQ2) is torching it up. Block shares have risen by a whopping 9.36% at the time of writing to $122.22 each, while Megaport Ltd (ASX: MP1) shares have risen by close to 8% at $6.39 each.

So what's going on with ASX 200 tech shares this Thursday that have resulted in such stellar gains?

Why are ASX 200 tech shares like Xero on fire today?

Well, it could be a combination of factors. Firstly, US tech shares have been on a bit of a run lately. The tech-heavy NASDAQ-100 Index (NASDAQ: NDX) has now gained more than 3% over the week so far. And some US tech giants like Tesla Inc are up even more than that.

US tech stocks often seem to set the mood for our own ASX 200 tech shares, so this is probably feeding into the positive sentiment we are seeing.

The other thing that could be playing a role in these gains is today's Australian unemployment figures.

This morning, the Australian Bureau of Statistics (ABS) released its latest labour market data. This showed the unemployment rate in the Australian economy rose from 3.5% in December to 3.7% in January.

The markets have responded well to this news, with the ASX 200 recording its highest intra-day levels after the report was publically released.

Rising unemployment could be showing that the Reserve Bank of Australia's (RBA) rapid interest rate hikes are starting to have some effect on the economy. Why is this good news for shares?

Well, a slowing economy could mean that the RBA might be about to stop hiking rates. And lower interest rates are good news for shares. Especially tech shares, which often rely on valuations based on future, not present, profitability.

So it's probably a combination of these factors that are helping the ASX 200 tech stocks like Xero to perform so strongly today.

The post Why are ASX 200 tech stocks like Xero having such a cracking run today? appeared first on The Motley Fool Australia.

True long-term investment means buying ASX shares of businesses that have excellent business prospects, regardless of recent stock price movements.

This philosophy is, as they say, simple but not easy.

It's especially difficult for amateur and professional investors alike when the stock price is haemorrhaging in the short term.

And that's fair enough. It's only human nature not to want to put money into losing assets.

But if you can act completely rationally, those could be the best buying opportunities ever.

The team at ECP Growth Companies Fund this week named two of its S&P/ASX 200 Index (ASX: XJO) holdings that are exactly in that position:

Don't be distracted by the current troubles

Nothing personifies recent strugglers more than technology company Megaport Ltd (ASX: MP1).

As a cash-burning growth business, the share price has taken an absolute battering.

Over the past 12 months, the stock has more than halved its value. Going back to November 2021, Megaport shares have lost an agonising 72%.

The stock price for the network-as-a-service provider again struggled in January.

ECP analysts, in a memo to clients, attributed this to a "mixed" quarterly update.

"Underlying port growth, a leading indicator for services, grew 30% quarter on quarter, though net ports only grew 2%," read the memo.

"Customers have started consolidating ports to larger ports (10GB to 100GB), giving them the ability to add more services to less ports."

This trend is painful for the immediate balance sheet, admitted the ECP fund managers, but a "net positive" in the long term.

Ultimately the business is heading towards spending less cash than it earns.

"The company has maintained their EBITDA positive run rate and expects this to extend to the full year," read the memo.

"Price increases and reduced costs also [bring] forward free cash flow positivity in our estimation."

'One of the highest quality travel companies in the world'

Although the Corporate Travel Management Ltd (ASX: CTD) share price gained almost 25% in January, it is still down 25% over the past year.

The simple fact is that the ECP team is happy to have this one in the portfolio, regardless of what the stock price has done in recent times.

"Corporate Travel Management remains one of the highest quality travel companies in the world," read its memo.

"And [it] is well positioned to benefit from a continued recovery in underlying travel volumes and expansion into new markets and regions."

The analysts admitted there is some short-term risk, but the longer-term trajectory is heading in the right direction.

"While there is still uncertainty related to the outlook for US and European travel volumes, the market in Australia — and to a lesser [extent] Asia — is still growing strongly, with domestic travel volumes leading the way."

Other professionals generally agree.

According to CMC Markets, seven out of 11 analysts currently covering Corporate Travel recommend it as a strong buy.

The post Buy these 2 struggling ASX 200 shares now while they're cheap: fund appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) broke a three-session-long losing streak on Tuesday, gaining 0.18% to close at 7,430.9 points.

It came on the back of a strong session on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) and the S&P 500 Index (SP: .INX) both rose 1.1% overnight while the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.5%.

It makes sense then that the S&P/ASX 200 Information Technology Index (ASX: XIJ) posted the biggest gain on the Aussie index, rising 1.3%.

The S&P/ASX 200 Communications Index (ASX: XTJ) also outperformed, gaining 1.1% with the Domain Holdings Australia Ltd (ASX: DHG) share price leading the way, lifting 5.5%.

Meanwhile, market giant CSL Limited (ASX: CSL) saw its share price rise 0.9% on the back of the company's half-year earnings.

On the other end of the market, the S&P/ASX 200 Energy Index (ASX: XMJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) fell 0.4% and 0.2% respectively.

But which ASX 200 share outperformed all others on Tuesday? Let's take a look.

Top 10 ASX 200 shares countdown

The index's best performer today was metal recycler Sims Ltd (ASX: SGM). Its stock soared 7.1% to close at $15.72 on Tuesday.

That was despite the company posting an 80% fall in statutory profit for the first half, leading it to slash its interim dividend by 66% to 14 cents per share.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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 despite its short interest falling heavily to 12.6%. Short sellers may have been closing positions after the travel agent's recent update.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest edge lower to 12.5%. Competition, cash burn, and valuation concerns may be weighing on this betting technology company's shares.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.9%. Short sellers have been adding to their positions since the network as a service provider released a disappointing quarterly update.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.6%, which is up week on week. Valuation concerns have been weighing on this lithium share.
• Sayona Mining Ltd (ASX: SYA) has 9.3% of its shares held short, which is up slightly week on week. Fears that lithium prices have peaked could be behind this high level of short interest.
• Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down slightly week on week. Once again, lithium price concerns appear to be behind this. In addition, project cost blow outs have sparked fears that a capital raising could be coming.
• Lake Resources N.L. (ASX: LKE) is a fourth lithium share in the list with 7.6% of its shares held short, which is up week on week. J Capital is shorting this lithium developer due to concerns over its technology and project funding.
• Pointsbet Holdings Ltd (ASX: PBH) is back in the top ten with 7.3% of its shares held short. Competition and cash burn concerns appear to be why short sellers are going after this sports betting company.
• NextDC Ltd (ASX: NXT) has returned to the top ten with short interest of 7%. Short sellers may have concerns that economic conditions could weigh on its performance.
• Zip Co Ltd (ASX: ZIP) has short interest of 6.9%, which is flat week on week. Short sellers appear to be doubting that Zip will be able to deliver profitable growth.

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

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating and $29.95 price target on this banking giant's shares. This follows the release of a solid quarterly update which revealed positive trends across the business. All in all, the broker was pleased with what it saw and remains bullish on the investment opportunity here. The ANZ share price is trading at $25.73 on Friday.

CSL Limited (ASX: CSL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $354.00 price target on this biotherapeutics giant's shares. This follows the release of a quarterly update from one of its partners. The broker suspects that the rollout of the new Rika plasma collection platform could be slower than expected and delay its earnings boost until next year. However, it isn't enough to put Morgan Stanley off and it stays bullish on the company's outlook. The CSL share price is fetching $303.99 this afternoon.

Megaport Ltd (ASX: MP1)

Another note out of Citi reveals that its analysts have retained their buy rating and $10.95 price target on this network as a service company's shares. While the broker suspects that trading conditions could remain subdued in the second half, it remains positive due to Megaport's strong sales pipeline and improved sales performance in January. The Megaport share price is trading at $5.90 today.

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Morgans' best ideas are those that it thinks offer the highest risk-adjusted returns over a 12-month timeframe. They are supported by a higher-than-average level of confidence and are the broker's most preferred sector exposures.

Replacing the miner was mining and mining services company Mineral Resources Ltd (ASX: MIN).

But that wasn't the only change. Listed below are the ASX 200 shares that joined the list in February.

CSL Limited (ASX: CSL)

Morgans sees this ASX 200 share as a key pick for a portfolio. It added the biotherapeutics giant to its best ideas list with an add rating and $312.20 price target. The broker commented:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long term forward multiple of 31.5x.

Megaport Ltd (ASX: MP1)

This network as a service provider's shares were added to list with an add rating and $8.25 price target. The broker explained:

MP1 is the world leader in Network as a Services (NaaS). They have first mover advantage, scale and technical expertise which means they are well placed to grow rapidly and maintain a healthy competitive advantage.

Mineral Resources

As mentioned above, Mineral Resources was added to list in the place of BHP this month. Morgans has an add rating and $99.40 price target on the ASX 200 miner's shares. It commented:

We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H'CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.

Qantas Airways Limited (ASX: QAN)

A final ASX 200 share that has been added to the list is airline operator Qantas. The broker has an add rating and $8.50 price target on the flying kangaroo's shares. It said:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings.

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Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

AGL Energy Limited (ASX: AGL)

The AGL share price is down 11% to $7.04. This follows the release of a disappointing half year result this morning. For the six months ended 31 December, AGL reported underlying net profit after tax of $87 million, which is a 55% decline on the prior corresponding period. This led to AGL slashing its dividend by half to 8 cents per share.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is down a further 6.5% to $8.70. Investors have been selling the shares of this wholesale computer hardware and software distributor since the release of its unaudited full year results yesterday. Dicker Data reported a 25% increase in revenue to $3.1 billion but a small decline in net profit after tax to $73.4 million.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 6% to $5.83. This has been driven by the release of the network as a service provider's half year results. Megaport reported a loss of $9.2 million and a reduction in its cash balance from $56.9 million to $39.2 million.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down 2.5% to $12.74. That's despite a large number of brokers responding positively to the banking and insurance giant's half year results from yesterday. For example, Morgans has retained its add rating and lifted its price target to $14.44, whereas Macquarie reaffirmed its outperform rating and increased its price target to $16.40.

The post Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) tech stock Megaport Ltd (ASX: MP1) is on a bit of a rollercoaster on Thursday. 

The tech company, which provides Network as a Service (NaaS) solutions, closed yesterday trading for $6.19 per share. In early morning trade shares were swapping hands for $6.63 apiece, up 7.1%.

In later morning trade, those fortunes reversed, with the ASX 200 tech stock now trading for $5.85, down 5.5%.

Here's what investors are considering.

Megaport share price seesaws on results

This morning Megaport released its results for the half-year ended 31 December (1H FY23).

(Note that all the figures quoted are in US dollars.)

The ASX 200 tech share is seeing some wild price swings and is currently deep in the red despite reporting revenue of US$47.4 million, a 27% increase compared to 1H FY22.

Monthly recurring revenue (for the last month of the reported period) increased 11% to $8.3 million.

Profits after direct network costs and partner commissions came in at $31.1 million, up 38% from the prior corresponding period.

While net losses improved from the $14.7 million reported in 1H FY22, 1H FY23 still saw the company report a net loss of $9.2 million.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) leapt from a loss during the corresponding half-year, to $2.3 million for the current reporting period.

As of December, the ASX 200 tech stock had 2,739 customers across 802 enabled data centres in 150 cities. The company has been broadening its footprint, reporting it reached 138 cities in 2021.

The Megaport share price could be under some pressure with the reported reduction in its cash and cash equivalents balance to $39.2 million. That's down from $56.9 million on 30 June 2022.

The board did not declare any dividends.

How has the ASX 200 tech stock been tracking?

As you can see in the chart below, it's been a difficult year for the ASX 200 tech stock. Over the past 12 months, the Megaport share price is down 57%.

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The S&P/ASX 200 Index (ASX: XJO) posted another loss on Tuesday, falling 0.46% to close at 7,504.1 points.

Seemingly weighing on the market was the Reserve Bank of Australia's (RBA's) move to hike the nation's benchmark interest rate for a ninth consecutive month.

The central bank added another 0.25% onto the cash rate today, bringing it up to 3.35% – a new 10-year high.

The S&P/ASX 200 Real Estate Index (ASX: XRE) plummeted amid the RBA's announcement, closing 1.6% lower.

Both the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) and the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) also slumped, falling 1.2% and 1.3% respectively.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) led the market, lifting 0.5% on stronger oil and coal prices.

So, with all that in mind, which ASX 200 shares defied the market's downturn to post today's biggest gains? Let's take a look.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was coal producer New Hope Corporation Limited (ASX: NHC).

It rose 3.7% to close at $6.16 after Coal Nymex soared 5.3% overnight, leaving the black rock trading at US$157 a tonne.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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For example, if a business dropped from $100 to $50, that's a fall of 50%. If an investor bought shares and it went back to $100, that would be a rise of 100%. I think some names could finish 2023 at a share price twice as high as the start of the year.

Still, a doubling of the share price in a short amount of time is certainly not guaranteed. With how much volatility we're seeing at the moment, they could just as easily finish 2023 lower than where they are right now.

However, with inflation seemingly peaking in the US and Australia, and interest rates getting close to the end of rises, the outlook could be improving for sold-off ASX tech shares, particularly if it seems like interest rate cuts are getting closer by the end of the year.

Airtasker Ltd (ASX: ART)

The Airtasker share price is down around 60% since December 2021.

This business provides a platform that enables people to advertise a task that needs doing, while taskers can offer to do the job.

I think the ASX tech share can continue to grow revenue and scale over the rest of 2023. Airtasker said in the three months to December 2022, its revenue rose 40.2% (13.6%, excluding the Oneflare acquisition).

What I thought was particularly exciting was that the UK's trailing twelve months of gross marketplace volume (GMV) grew 83.1% to £3.5 million, while US quarterly posted tasks increased 5.4 times year over year.

It also said its cash burn fell 44.3% to $2.6 million, while also having $23.3 million of cash on the balance sheet.

I think its ongoing growth can recapture investor attention as its profitability improves.

Gentrack Group Ltd (ASX: GTK)

Gentrack is an ASX tech share that provides software for utility companies and airports to run their operations.

A number of leading airports use Gentrack including Melbourne Airport, Sydney Airport, Gatwick Airport, Schiphol (Amsterdam's airport), and Auckland International Airport Limited (ASX: AIA).

Gentrack recently reported the rapid rebound of travel has accelerated airports' digitisation plans. In fact, the company said that 55% of airports expected to spend more on IT.

The company also said it's going to expand globally in 2023 – it plans to use its partnership strategy to replace other tech providers. It's also going to "amplify" its marketing to build global brand awareness, with around $3 million per year to spend on sales and marketing.

Management expects to achieve its previous FY24 revenue target of $130 million in FY23. FY24 revenue is now guided to be $150 million. As it scales, the company's profit margin could improve.

While the Gentrack share price is higher than 2022, I think it could keep rising as momentum builds.

Megaport Ltd (ASX: MP1)

The Megaport share price is down more than 70% since November 2021.

Higher interest rates and a slowing growth rate certainly aren't impressing investors. But I think the company's exposure to cloud computing infrastructure gives it a promising outlook for the long term.

The second quarter of FY23 still showed growth, with revenue up 10% quarter over quarter to A$37 million, and December 2022 monthly recurring revenue up 6% quarter over quarter to A$12.4 million.

However, at the end of the quarter, the number of customers had only increased 1% to 2,739 quarter over quarter and total ports had increased 2% quarter over quarter. Average revenue per port in December 2022 was A$1,260, an increase of 3.8% quarter over quarter.

Megaport said that the economic uncertainty is delaying customer decision-making. However, the company isn't seeing an increase in customer churn. The ASX tech share expects sales trends "will improve when the global economy stabilises". I think investor and business confidence could return by the end of 2023.

The post 3 ASX tech shares that could return 100% in 2023 appeared first on The Motley Fool Australia.