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At the start of each week, I like to look at ASIC's short position report to find out which ASX shares are being targeted by short sellers.
That's because I believe it is 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:
- Lotus Resources Ltd (ASX: LOT) remains the most shorted ASX share after its short interest rose to 17.2%. Short sellers have been loading up on this uranium producer's shares following a disastrous quarterly update. Lotus reported weak production and a sizeable cash burn. Many in the market are now expecting another capital raising later this year.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest remain flat at 15.6%. Short sellers don't appear to believe this pizza chain operator's turnaround plans will deliver a meaningful improvement in its performance.
- Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15%. This radiopharmaceuticals company has struggled with key US FDA approvals over the past 18 months.
- Boss Energy Ltd (ASX: BOE) has short interest of 14.3%, which is up since last week. The market has concerns over this uranium miner's production outlook from 2027.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14.1%, which is up week on week. However, short sellers will have been disappointed to see this quick service restaurant operator's shares rocket last week after it announced the closure of its US operations.
- Polynovo Ltd (ASX: PNV) has 13.6% of its shares held short, which is down week on week. Short sellers appear to believe the medical device company's shares are overvalued given its high PE ratio.
- Treasury Wine Estates Ltd (ASX: TWE) has 13.5% of its shares held short, which is up week on week. Short sellers continue to target the wine giant despite a recent and encouraging trading update.
- Zip Co Ltd (ASX: ZIP) has 11.6% of its shares held short. This is down since last week. Short sellers may believe the buy now pay later provider's performance could be impacted by weak consumer spending and higher interest rates.
- DroneShield Ltd (ASX: DRO) has 11.5% of its shares held short, which is up since last week. Short sellers have been increasing their positions after the counter-drone technology company revealed that it was the subject of an ASIC investigation.
- CAR Group Limited (ASX: CAR) has entered the top ten with short interest of 11.2%. Short sellers may believe that trading conditions are tough and the auto listings company could underperform expectations.
