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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) stays at the top of the list with short interest of 17.2%, which is down slightly since last week. 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 15.7%. Short sellers are betting against this struggling pizza chain operator's turnaround strategy.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is flat week on week. This burrito seller's shares crashed last week following the release of a disappointing half-year result.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease to 13.7%. Short sellers seem to believe the wine giant's turnaround will take longer than expected.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.4%, which is down week on week. This radiopharmaceuticals company has been facing delays with FDA approvals.
- Polynovo Ltd (ASX: PNV) has short interest of 12.3%, which is up since last week. Short sellers may believe this medical device company's shares are overvalued at current levels.
- IPH Ltd (ASX: IPH) has short interest of 11.7%, which is up week on week. This intellectual property services company has been battling weaker volumes and market share losses.
- IDP Education Ltd (ASX: IEL) has 11% of its shares held short, which is down week on week. Changes to visa rules in key markets have weighed on this student placement and language testing company's performance.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.6%, which is down week on week. This may be due to concerns that the travel agent won't deliver on its revenue margin targets.
- PWR Holdings Ltd (ASX: PWH) has short interest of 10.1%, which is flat week on week. This automotive cooling products company's shares jumped last week following a strong half-year result.
