Are the 10 most shorted shares on the ASX in your portfolio?

Domino's Pizza Enterprises Ltd. (ASX:DMP) is a new addition to the most shorted shares list. Do you own any of the top 10?

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Every Monday I like to take a look at data provided by ASIC to see which ASX shares are currently being targeted by short sellers.

Although short sellers often get it wrong, I believe investors should pay close attention to high short interest as it could be seen as an early warning sign of a share price decline.

At present these are the 10 most shorted shares on the ASX:

  • Orocobre Limited (ASX: ORE) is now the most shorted share on the ASX with 17.8% of its shares in the hands of short sellers. Investors appear to have become increasingly bearish on the lithium miner since it cut its annual production guidance.
  • Aconex Ltd (ASX: ACX) isn't far behind with short interest of 17.7%. Whilst I think the software-as-a-service company is one of the best tech shares on the market, the rising short interest is a concern.
  • Western Areas Ltd (ASX: WSA) has seen short interest spike for a second week in a row. The nickel producer now has 17.6% of its shares held short.
  • Myer Holdings Ltd (ASX: MYR) has 15.8% of its shares in the hands of short sellers. Myer's recent results were certainly a step in the right direction, but not enough to cause short sellers to give up on the department store operator.
  • Quintis Ltd (ASX: QIN) has 14.5% of its shares held short. Last week a report from Glaucus Research alleged that the sandalwood plantation manager had a Ponzi-like structure and faces bankruptcy. Until last week Quintis was known as TFS Corporation.
  • Syrah Resources Ltd (ASX: SYR) has seen short interest rise slightly to 13.7%. Despite this, the graphite miner's shares rallied strongly at the end of last week after it announced that the commissioning of its Balama project was on schedule.
  • Vocus Group Ltd (ASX: VOC) has seen its short interest fall slightly to 11.6%. Although the short interest is a concern, at the current share price I think the telco company provides investors with a compelling risk/reward.
  • Nine Entertainment Co Holdings Ltd (ASX: NEC) has 10.6% of its shares held short, down slightly for a second week in a row. The media company's share price has fallen 25% in the last 12 months.
  • Domino's Pizza Enterprises Ltd. (ASX: DMP) is a new addition to the top 10 with 10.6% of its shares held short. Short sellers appear to have the pizza chain operator in their sights following allegations that franchisees may be mistreating and underpaying employees.
  • Metcash Limited (ASX: MTS) has 10.2% of its shares in the hands of short sellers. Short interest in the wholesale distributor has held steady for a second week in a row.
Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »