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Once a 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 with short interest of 22.8%. This ASX uranium stock suspended its shares late last month pending an update on its Kayelekera Project. At present, Lotus shares are due to stay suspended until 16 July.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 14%. It seems that short sellers aren't confident the pizza chain operator's turnaround will be successful.
- Boss Energy Ltd (ASX: BOE) has short interest of 13.4%, which is down week on week again. This uranium miner's production outlook from 2027 is uncertain, with an update due by the end of August.
- DroneShield Ltd (ASX: DRO) has seen its short interest fall to 12%. This counter-drone technology company has been targeted by more short sellers since it announced an ASIC investigation into some announcements and insider share sales.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12%, which is down meaningfully since last week. Short sellers may have been closing positions after the radiopharmaceuticals company announced the successful outcome of a Type B meeting with the US FDA.
- Paladin Energy Ltd (ASX: PDN) has 11.55% of its shares held short, which is up week on week. It is yet another uranium producer that short sellers are targeting.
- CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is down since last week. There may be concerns that higher interest rates could weigh on the automotive market and listing volumes.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.4% of its shares held short, which is down slightly week on week. This travel agent downgraded its earnings guidance last month due to negative impacts from the Middle East conflict. Short sellers may believe the recovery won't be as quick as many expect.
- Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11%. The Penfolds owner is facing tough trading conditions due to the cost of living crisis.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest ease again to 11%. This medical technology company is growing rapidly but its shares trade on sky-high multiples. Short sellers may believe its valuation is excessive.
