Image source: Getty Images
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 increased again to 20%. Short sellers have increased their positions after a disappointing quarterly update which revealed weak production and a sizeable cash burn. There are concerns another capital raising will be needed later this year.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.2%. Short sellers don't appear to have confidence that management will successfully execute its turnaround plans for the pizza chain operator.
- Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest rise to 15.1%. Short sellers have loaded up on this radiopharmaceuticals company over the past 18 months amid concerns over US FDA approvals.
- Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is flat since last week. The market continues to have fears over the uranium miner's uncertain production outlook beyond 2026.
- Treasury Wine Estates Ltd (ASX: TWE) has 12.9% of its shares held short, which is down week on week. Short sellers will have been disappointed to see the market react positively to the wine giant's investor day update this month.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.5%, which is down week on week. Short sellers have been closing positions after the quick service restaurant operator shut its loss-making US operations.
- DroneShield Ltd (ASX: DRO) shares have returned to the top ten with short interest of 11.4%. This may be due partly to the recent news of an ASIC investigation into some of the counter-drone technology company's announcements and insider share trades.
- CAR Group Limited (ASX: CAR) has short interest of 11.2%, which is down since last week. It is possible that short sellers think higher interest rates and rising fuel costs could weigh on the automotive market.
- PLS Group Ltd (ASX: PLS) has entered the top ten with short interest of 10.9%. This could be due to a combination of valuation concerns and recent lithium price weakness.
- Flight Centre Travel Group Ltd (ASX: FLT) has 10.8% of its shares held short. There are fears that the Middle East conflict could weigh on this travel agent's performance.
