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, listed below are the 10 most shorted shares on the ASX this week according to ASIC.
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The top ten most shorted ASX shares
- Lotus Resources Ltd (ASX: LOT) continues its run as Australia's most shorted share with short interest of 22.8%. The ASX uranium developer suspended its shares last month while it prepares an update on its Kayelekera Project. Lotus shares are due to return to trade on 16 July.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 13.9%. Short sellers are betting heavily against the pizza chain operator's turnaround plans.
- DroneShield Ltd (ASX: DRO) has short interest of 11.9%, which is down slightly since last week. Short sellers have been targeting the counter-drone technology company after it revealed an ASIC investigation into some announcements and insider share sales.
- Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.9%, which is down slightly since last week. This radiopharmaceuticals company has seen its short interest ease since announcing the successful outcome of a Type B meeting with the US FDA.
- Boss Energy Ltd (ASX: BOE) has short interest of 11.8%, which is down week on week again. There are concerns over this uranium miner's production outlook. An update is due by the end of August.
- 4DMedical Ltd (ASX: 4DX) has seen its short interest rebound to 11.5%. This medical technology company's shares trade on sky-high multiples. It appears that short sellers believe this valuation is excessive.
- Flight Centre Travel Group Ltd (ASX: FLT) has 11.4% of its shares held short, which is flat week on week. Short sellers may be expecting the travel agent giant's near term performance to be negatively impacted by the Middle East conflict.
- Paladin Energy Ltd (ASX: PDN) has 11.4% of its shares held short, which is down week on week. Short sellers appear to be betting against the uranium bull market.
- CAR Group Limited (ASX: CAR) has short interest of 11.3%, which is down since last week. This may be due to fears that higher interest rates could slow the growth of the automotive market and listing volumes.
- Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease to 10.9%. The wine giant, which owns the Penfolds brand, is facing tough trading conditions because of the cost of living crisis.
