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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:
- Domino's Pizza Enterprises Ltd (ASX: DMP) has become the most shorted ASX share with short interest of 17.3%. Though, this is down slightly week on week. Short sellers appear to be doubting that this pizza chain operator's turnaround strategy will be a success.
- Boss Energy Ltd (ASX: BOE) has seen its short interest reduce materially to 16.3%. This uranium producer's shares have rallied strongly since the start of the year amid optimism over uranium demand and prices.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. This taco and burrito seller's performance has been softer than expected, especially in the United States.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest jump to 13%. This wine giant is facing distributor uncertainty in the United States and unfavourable consumer trends.
- IDP Education Ltd (ASX: IEL) has 12.3% of its shares held short, which is up week on week. Student visa changes in key markets are negatively impacting the company's performance and outlook.
- Paladin Energy Ltd (ASX: PDN) has short interest of 11.9%, which is down week on week again. This uranium producer's shares hit a 52-week high last week, much to the dismay of short sellers.
- Polynovo Ltd (ASX: PNV) has short interest of 11.7%, which is up since last week. This may be due to concerns over this medical device company's valuation.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.3%, which is flat week on week. Short sellers may believe that this radiopharmaceuticals company could struggle with its FDA approvals and increased regulatory scrutiny.
- Flight Centre Travel Group Ltd (ASX: FLT) is back in the top ten with short interest of 11.1%. This may be due to concerns over the travel agent's revenue margin outlook.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.7%, which is down week on week again. Short sellers have been closing positions after this advanced cooling products and solutions provider's shares jumped to a 52-week high thanks to a defence contract win.
