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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) remains the most shorted ASX share after its short interest rose to 15.4%. This pizza chain operator is undertaking a turnaround strategy and short sellers don't appear confident it will succeed.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 13.9%, which is down since last week. Short sellers may be betting against this radiopharmaceuticals company successfully getting its products approved by the US FDA.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. Short sellers aren't giving up on this quick service restaurant operator despite its shares rocketing this month after reporting a big improvement in its performance.
- Polynovo Ltd (ASX: PNV) has 13.7% of its shares held short, which is down since last week. Short sellers seem to think this medical device company's shares are overvalued. However, both Bell Potter and Morgans believe they could rise approximately 80%.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 13%. This is likely to have been driven by concerns that the wine giant will continue to struggle with consumer spending pressures and distributor disruption.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12.9%, which is up week on week. Short sellers appear to believe that travel demand could be impacted by the Middle East conflict.
- DroneShield Ltd (ASX: DRO) has 12.7% of its shares held short, which is up since last week. This counter drone technology company recently announced the sudden exit of its CEO and chair. This disruption and valuation concerns could be weighing on sentiment.
- Zip Co Ltd (ASX: ZIP) has short interest of 12.5%. Unfortunately for short sellers, this buy now pay later provider impressed the market with its quarterly update last week.
- Boss Energy Ltd (ASX: BOE) has short interest of 11.5%, which is down since last week. This uranium miner's production outlook is uncertain beyond 2026. Short sellers appear to be betting on production falling more than the market is predicting.
- Lotus Resources Ltd (ASX: LOT) has entered the top ten with short interest of 11%. It is another uranium producer that short sellers are targeting.
