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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:
- Boss Energy Ltd (ASX: BOE) has returned to the top of the list after its short interest increased to 17.4%. Production concerns have been weighing on this uranium producer's shares.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 16.1%. Short sellers don't appear to have faith in the pizza chain operator's turnaround strategy.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 14.4%. This wine giant is releasing its half-year results today. Short sellers seem to believe the company will disappoint the market.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is down week on week. Valuation concerns and a poor performance in the US could be why short sellers are targeting this burrito seller.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.5%, which is up week on week. This radiopharmaceuticals company has been struggling with delays to FDA approvals.
- Polynovo Ltd (ASX: PNV) has short interest of 12.1%, which is flat since last week. This medical device company's shares are trading on high multiples. Short sellers may not expect its growth to justify this premium valuation.
- IDP Education Ltd (ASX: IEL) has 11.5% of its shares held short, which is up week on week. This student placement and language testing company has been having a tough 18 months due to student visa changes in key markets.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11%, which is down week on week. Short sellers appear to be betting against this travel agent delivering on its revenue margin targets.
- IPH Ltd (ASX: IPH) has short interest of 11%, which is flat week on week. Weaker volumes and market share losses appear to be why short sellers are targeting this intellectual property services company.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.1%, which is down slightly week on week. This automotive cooling products company's shares trade on lofty multiples.
