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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) continues to be the most shorted ASX share with short interest of 17%. This is up slightly week on week. Short sellers appear to be betting against the pizza chain operator's turnaround strategy.
- Boss Energy Ltd (ASX: BOE) has seen its short interest rebound to 16.6%. Short sellers have done well with this one. The uranium producer's shares are down over 50% since this time last year amid production concerns.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14.1%, which is up slightly week on week. This may be due to disappointment over the taco and burrito seller's performance in the United States market.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 13.8%. This wine giant is facing distributor uncertainty in the United States and unfavourable consumer trends.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12.2%, which is up week on week. Short sellers appear to have doubts over the travel agent's revenue margin outlook.
- Polynovo Ltd (ASX: PNV) has short interest of 12.1%, which is flat since last week. Short sellers seem to believe that this medical device company's shares are overvalued.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.9%, which is up slightly week on week. This radiopharmaceuticals company has been struggling with FDA approvals.
- IDP Education Ltd (ASX: IEL) has 11% of its shares held short, which is down week on week. This student placement and language testing company has been negatively impacted by student visa changes in key markets.
- IPH Ltd (ASX: IPH) has returned to the top ten with short interest of 11%. Softer volumes have been weighing on this IP service provider's performance.
- PWR Holdings Ltd (ASX: PWH) has also returned to the top ten with short interest of 10.2%. This automotive cooling products company's shares currently trade at almost 90 times earnings. Short sellers may believe that is too much of a premium.
