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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 increased to 22.9%. This ASX uranium stock is expected to return from a trading halt today with some big news relating to its Kayelekera Project. Short sellers appear to believe it will be bad news.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 14.5%. The pizza chain operator continues to be targeted by short sellers, possibly on the belief that its turnaround will take longer than hoped.
- Boss Energy Ltd (ASX: BOE) has short interest of 14.4%, which is up week on week. The driver of this appears to be the uranium miner's uncertain production outlook beyond 2026.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.9%, which is down since last week. This radiopharmaceuticals company has been struggling with US FDA approvals over the past 18 months. Short sellers may believe the trend will continue.
- Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.5%, which is down slightly week on week. This quick service restaurant operator recently announced the closure of its loss-making US operations.
- Treasury Wine Estates Ltd (ASX: TWE) has 12.4% of its shares held short, which is down week on week. This wine giant is battling tough trading conditions as consumers battle the cost of living crisis.
- CAR Group Limited (ASX: CAR) has short interest of 12%, which is up slightly since last week. There are concerns that higher interest rates and rising fuel costs could weigh on the automotive market in the near term.
- DroneShield Ltd (ASX: DRO) has short interest of 11.8%, which is down week on week. An ASIC investigation into some of the counter-drone technology company's announcements and insider share sales may be behind this.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.5% of its shares held short, which is up week on week. Last week, the travel agent downgraded its earnings guidance. It blamed the downgrade on the Middle East conflict.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest increase to 11.3%. This may be due to valuation concerns. The medical technology company now has a lofty valuation following a stunning gain over the past 12 months.
