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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) has become the most shorted ASX share again after its short interest rose to 15.9%. A poor update from the Domino's US business has cast further doubt on this pizza chain operator's turnaround.
- Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.6%. Short sellers have been targeting this radiopharmaceuticals company this year amid US FDA approval challenges.
- Lotus Resources Ltd (ASX: LOT) has short interest of 15.1%, which is up sharply week on week. Short sellers have been loading up on this uranium producer's shares following a disastrous March quarter which saw weak production and a sizeable cash burn. This has many in the market expecting another capital raising later this year.
- Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is flat week on week. It is possible that short sellers think this medical device company's shares are overvalued due to their premium valuation.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14%, which is up week on week. Short sellers appear to be targeting the quick service restaurant operator due to the underperformance of its US operations.
- Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is up since last week. The market is concerned about this uranium miner's production outlook beyond 2026.
- Treasury Wine Estates Ltd (ASX: TWE) has 12.5% of its shares held short, which is down week on week. Short sellers have been closing positions after the struggling wine giant released an encouraging trading update.
- Zip Co Ltd (ASX: ZIP) has 11.9% of its shares held short. This is up slightly since last week. This is despite the buy now pay later provider delivering both a strong quarterly update last month and an equally strong trading update last week.
- DroneShield Ltd (ASX: DRO) has 10.8% of its shares held short, which is down since last week. This may be due to valuation concerns.
- Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.7%, which is down week on week. A stronger than expected trading update from the travel agent appears to have discouraged short sellers.
