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:
- Domino's Pizza Enterprises Ltd (ASX: DMP) has become the most shorted ASX share again after its short interest rose to 15.9%. A poor update from the Domino's US business has cast further doubt on this pizza chain operator's turnaround.
- Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.6%. Short sellers have been targeting this radiopharmaceuticals company this year amid US FDA approval challenges.
- Lotus Resources Ltd (ASX: LOT) has short interest of 15.1%, which is up sharply week on week. Short sellers have been loading up on this uranium producer's shares following a disastrous March quarter which saw weak production and a sizeable cash burn. This has many in the market expecting another capital raising later this year.
- Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is flat week on week. It is possible that short sellers think this medical device company's shares are overvalued due to their premium valuation.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14%, which is up week on week. Short sellers appear to be targeting the quick service restaurant operator due to the underperformance of its US operations.
- Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is up since last week. The market is concerned about this uranium miner's production outlook beyond 2026.
- Treasury Wine Estates Ltd (ASX: TWE) has 12.5% of its shares held short, which is down week on week. Short sellers have been closing positions after the struggling wine giant released an encouraging trading update.
- Zip Co Ltd (ASX: ZIP) has 11.9% of its shares held short. This is up slightly since last week. This is despite the buy now pay later provider delivering both a strong quarterly update last month and an equally strong trading update last week.
- DroneShield Ltd (ASX: DRO) has 10.8% of its shares held short, which is down since last week. This may be due to valuation concerns.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.7%, which is down week on week. A stronger than expected trading update from the travel agent appears to have discouraged short sellers.
The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises, DroneShield, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino's Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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