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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) remains the most shorted ASX share with short interest of 16.1%, which is down since last week. There are concerns over this uranium miner's production outlook.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to believe the struggling pizza chain operator's turnaround strategy will fail. Last month, it reported a 2.5% decline in same store sales during the first half.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 14.4%. This wine giant has been battling very tough trading conditions. Short sellers may not believe a change is coming in the near term.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This burrito seller's shares crashed last month in response to the release of a disappointing half-year result. It continues to make a loss in the United States, which was supposedly its largest growth opportunity.
- Polynovo Ltd (ASX: PNV) has short interest of 12.9%, which is up since last week. This medical device company could have been targeted due to its lofty valuation.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.4%, which is flat since last week. This radiopharmaceuticals company has been facing delays with FDA approvals.
- IPH Ltd (ASX: IPH) has short interest of 12.3%, 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 11.8% of its shares held short, which is up week on week. Changes to visa rules in key markets have weighed on sentiment and this student placement and language testing company's performance.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.8%, which is up week on week. There are concerns that the travel agent won't deliver on its revenue margin targets.
- Nanosonics Ltd (ASX: NAN) has entered the top ten with short interest of 10.3%. Last month, this infection prevention company posted a 3% decline in profit before tax during the first half. Short sellers may believe this trend will continue.
