Nanosonics was asked yesterday by the ASX if they had any information that would explain yesterday's 11% share price drop and increase in volume.

Predictably their REPLY indicated they had no information that might explain it though the fact a substantial share holder (State Street Corporation) sold 3.5M shares last week may have contributed to the volatility. It's possible a few short sellers may have snapped up a few shares in the process to reduce their exposure.

Nanosonics according to Shortman is the 7th most shorted stock on the ASX as of the 7th December at 8.4%.

Being a few days behind it will be interesting to see if yesterday's shenanigans have had any impact.

Seems some brokers didn't like Nanosonics update. NAN down -12% yesterday.

Short Sellers will be loving it.

This exert from a James Mickleboro article at

https://www.fool.com.au/2022/11/21/why-is-the-nanosonics-share-price-crashing-12-today/

Why is the Nanosonics share price crashing?

Investors have been hitting the sell button on Monday after brokers responded negatively to the company’s recent trading update.

One of those brokers was Goldman Sachs, which has reiterated its sell rating and $3.50 price target on the company’s shares.

Goldman highlights that Nanosonics has started FY 2023 positively in respect to sales but elected not to comment on its operating costs or earnings. It said:

As expected, there was no update on Opex at the 4m mark, which remains a key question following the sharp increase in headcount and operational infrastructure required for the new US distribution model. As a reminder, FY23 opex guidance of +15-18% surprised consensus to the upside at the time (following the +28% growth in FY22, which had already included some pull-forward), and was a key driver of our -50-130bps EBIT margin revisions in August.

Overall, whilst capital revenue continues to run ahead of our expectations, we are less clear on the near/long-term consumables trajectory and the cost/margin profile, and we make no changes to our forecasts (FY23E revenue/EBIT $153m/$10m).

After yesterday's positive update I thought I'd update Nanosonics short interest.

Nanosonics continues to attract short interest and has increased over the past few weeks. The latest Shortman info has NAN at 8th most shorted company on the ASX at 9.14% It will be interesting to see if there is any change over the next few weeks given management indicated at yesterday's AGM that it had successfully transitioned to a direct sales model in North America and the benefits of that should start to flow through. https://www.shortman.com.au/stock?q=NAN

Shortman reports short interest in Nanosonics back up to 8.42% and the 8th most shorted company on the ASX.

It had been steadily declining from a high of 12.5% since July. I had thought the shorters had lost interest but now it has jumped back up nearly 1% in the past few weeks.

I'll continue to monitor it.

Held in RL and on SM

Nanosonics short interest continues to drop though it is still the 8th most shorted stock on the ASX as at 13 September 2022.

Shortman has Nanosonics short interest at 8.21% so that's another half a percent drop from my last look 2 weeks ago.

At that time Nanosonics was about 10.5% shorted and was trading around $5.00. Today its about $3.68, approximately 25% lower.

I'll keep an eye on it though there is a 4 trading day lag on Shortmans reports.

Disc: I continue to own on SM and IRL.

Been keeping an eye on Shortman recently and have noticed short interest in Nanosonics has taken a bit of a dive in the past couple of months.

Back in July, NAN was 3rd most shorted stock on the ASX at 12.5% of shares - as of 31st August it was 8.76% .

Since reporting in mid August NANs share price has contracted about 20% so its possible more share price pressure will continue.

I'll keep an eye on it as Nanosonics is a quality company undergoing a sales restructure and it's possible in the short term at least the market has frowned on it and may present an attractive price.

I HOLD on SM & IRL.