This middling end to the Australian trading week followed a far more optimistic night up on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) staged a decisive bounce-back, rising 0.61%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, gaining a healthy 1.69%.

But let's get back to the local markets now and examine how the different ASX sectors fared amid today's indecisive trading conditions.

Winners and losers

There were a few winners to balance out the red sectors this Friday.

But first, to the losers.

Leading the pessimistic sectors this session were real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) copped some displeasure, tanking 1.31%.

Energy shares were also on the nose, with the S&P/ASX 200 Energy Index (ASX: XEJ) plunging 1.1%.

Consumer staples stocks were no safe haven. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) cratered by 1.04% this session.

We could say the same for communications shares, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 0.77% retreat.

Financial stocks weren't finding many buyers. The S&P/ASX 200 Financials Index (ASX: XFJ) gave back 0.59%.

Consumer discretionary shares were just ahead of that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) diving 0.54%.

Healthcare stocks weren't feeling the love. The S&P/ASX 200 Healthcare Index (ASX: XHJ) ended up sliding 0.36% lower.

Our last losers this Friday were industrial shares, as you can see from the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.16% slip.

Turning to the winners now, it was gold stocks that shone the brightest. The All Ordinaries Gold Index (ASX: XGD) soared 3.9% higher this session.

Broader mining shares ran hot too, with the S&P/ASX 200 Materials Index (ASX: XMJ) roaring 1.6% higher.

Tech stocks got some love as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) added 0.73% to its total today.

Finally, utilities shares got over the line, evident from the S&P/ASX 200 Utilities Index (ASX: XUJ)'s 0.14% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our best performer this Friday. 4DMedical shares rocketed 13.42% this session to close the week at $4.31 each.

We dove into what might have caused this rally this afternoon.

Here's the rest of today's best:

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The 4DMedical share price has jumped 10.79% to $4.21 around midday, with more than 4 million shares already changing hands.

It continues what has been a pretty dramatic turnaround over the past week.

The stock touched $3.31 last Friday and has since climbed around 27%.

And today's move has caught my attention because 4DMedical remains one of the most heavily shorted stocks on the ASX.

So, what is driving buyers back into this ASX 200 healthcare stock?

Why are buyers coming back?

The first place I'd look is the size of the recent sell-off.

Even after today's jump, 4DMedical shares are still trading around 44% below their 52-week high of $7.55.

That's a pretty big reset for a company that has continued making progress on the commercial side.

In FY26, operating revenue rose 21% to $7.1 million, while scan volumes increased 77% to 344,075 scans.

The company also finished the year with its software available across 540 sites globally, up 39% from a year earlier.

There has been more progress in the United States as well, with CT:VQ being rolled out across major healthcare networks and imaging providers.

Could short sellers be adding fuel?

The other part of Friday's move is the very large short position sitting against the stock.

As of 11 September, around 12.4% of 4DMedical shares were reported short, making it one of the most shorted stocks on the ASX.

That means a large number of traders are still positioned for the share price to fall.

When a heavily shorted stock suddenly starts climbing, some of those traders can be forced to buy shares back to close their positions.

That extra buying can then add more momentum to the rally.

Of course, we can't know for sure that's happening today because short position data comes through with a 4-trading-day delay.

Still, with the shares up more than 20% over the past week, I wouldn't be surprised if some short covering is helping the move.

What should investors watch next?

The stock has already bounced around 27% from last Friday's low, so I wouldn't get carried away just yet.

I'd be more inclined to watch whether 4DMedical can keep building its commercial progress, especially in the United States.

Scan volumes are rising, and more sites are coming on board, but shareholders will eventually want to see that translate into stronger revenue.

Still, with the shares well below their highs, I can see why buyers are starting to come back.

The post 4DMedical shares are rocketing 11% today. Is a short squeeze starting? appeared first on The Motley Fool Australia.

If you're weighing up a buy between 4DMedical Ltd (ASX: 4DX) and Telix Pharmaceuticals Ltd (ASX: TLX), you're comparing two ambitious Australian medical technology companies. Both are at the forefront of healthcare innovation, but their financial profiles and recent growth stories offer very different investment prospects. Let's dig in to see how these two stack up.

The case for 4DMedical

4DMedical is breaking new ground in respiratory imaging. Its flagship CT:VQ software turns CT scans into detailed lung maps, giving doctors advanced tools for diagnosing diseases like pulmonary embolism and emphysema. The tech's already in use at top US hospitals like Mayo Clinic and Stanford, with a recent European expansion thanks to its acquisition of Contextflow.

Looking at the numbers, 4DMedical carries a sizeable market cap of $2.07 billion but has yet to become profitable, posting negative earnings per share of -0.405. There's no dividend on offer, and no price/earnings (P/E) ratio available yet; this signals it's still firmly in growth mode. The year-to-date return sits at -14.5%, indicating a tough recent run for shareholders. This makes 4DX more of a high-risk, high-potential play, especially for those backing new technology looking to disrupt established medical imaging markets.

The case for Telix Pharmaceuticals

Telix Pharmaceuticals is a commercial-stage biotech pushing the boundaries of cancer diagnostics and treatment. Its main product, Illuccix, has approvals from regulators including the TGA, FDA and Health Canada, making it a global force in prostate cancer imaging. Beyond Illuccix, Telix is running more than 20 clinical trials worldwide, chasing breakthroughs in cancer types ranging from kidney to brain to bone marrow.

Telix stands out for having already turned the corner into profitability. Its market cap dwarfs 4DMedical's at $6.03 billion. Earnings per share are positive (0.099), which is rare for an ASX biotech this size. The company trades on an eye-watering P/E ratio of 118.40—sky-high, but not unusual for fast-growing pharmaceutical businesses. Like 4DMedical, Telix pays no dividend, pouring resources back into growth. But the real highlight is a stellar year-to-date share price return of 45.89%, signalling momentum.

Valuation comparison

Here's a side-by-side look at the major valuation and fundamental metrics:

There's a clear gap in scale and financial maturity. Telix is both far larger by market cap and actually generating earnings, whereas 4DMedical is still burning through capital to develop its market. Neither pays a dividend, so both are pure growth plays.

Recent share price performance

Share prices can be volatile in the health tech sector, but the difference here is striking. As of the latest data (mid-September 2026), 4DMedical shares sit at $3.44, having dropped 14.5% year to date. Its weekly moves have often swung several percent either way, showing volatility without a clear upward momentum.

Telix, meanwhile, is on a tear. As of 15 September 2026, shares closed at $17.75 and are up a hefty 45.89% for the year. The stock has seen sharp daily moves—like an 8.63% gain on one recent day—but the overall trend has been strongly positive. Telix's growth story is, at least so far, being rewarded by the market.

Which is the better buy?

Weighing up these two, my pick would be Telix Pharmaceuticals. The company has global regulatory runs on the board, it's already doing solid revenue, and it's delivered real profit. Yes, it does trade on a huge earnings multiple, but I'd see that as justified given the momentum: 45% year-to-date gains, and more than 20 clinical trials in the pipeline.

4DMedical clearly has exciting technology and major growth aspirations, but as of now, it's loss-making and suffering negative share price performance.

In short: if I'm backing an Aussie health innovator today, I'd go with Telix.

The post 4DMedical vs Telix Pharmaceuticals: ASX health tech share showdown appeared first on The Motley Fool Australia.

Here's the story behind each move, plus what brokers now expect.

Telix now has 3 FDA-cleared diagnostics

Telix just delivered the news investors had circled on their calendars. On Monday, the FDA approved Pixclara, Telix's PET imaging agent for brain cancer, confirming Pixclara is the only FDA-approved radiopharmaceutical imaging drug for glioma.

That's a big deal. This asset had already been knocked back once, with the FDA issuing a knockback in mid-2025 over data consistency before Telix resubmitted its application and won a priority review with a September action date. Getting it over the line removes years of regulatory overhang in one shot.

This ASX healthcare share has been a rollercoaster for exactly this reason. Binary regulatory outcomes can swing the price into double digits overnight. With approval finally locked in, Telix now has three FDA-cleared products anchoring its diagnostics franchise, adding a new revenue stream to its existing prostate and kidney imaging portfolio.

Brokers were already leaning bullish before Monday's news. Consensus data shows 13 out of 16 analysts on TradingView rate Telix a buy or strong buy, with an average 12-month price target around 45% above the current share price.

Citi has been the most bullish, maintaining a $31 target, while JPMorgan sits around $24.40. Not everyone's on board. RBC downgraded to hold with an $18 target, a fraction higher than the share price at the time of writing.

4DMedical: starting to show commercial traction

4DMedical's move is smaller in percentage terms but reflects a similar theme: commercial traction finally showing up in the numbers.

The respiratory-imaging company has spent the past two years converting FDA clearances and marquee partnerships into actual revenue, and this ASX healthcare share has rewarded patient holders handsomely with a 112% gain over 12 months.

The engine for this tech stock is CT:VQ, 4DX's ventilation-perfusion imaging software, which uses ordinary chest CT scans to generate the kind of data that once required nuclear medicine.

Adoption has been building steadily across top-tier US academic centres, and Medicare has already confirmed reimbursement under Category III CPT codes. That's a crucial unlock for hospital adoption at scale.

Analysts, though, are more split on 4DMedical than on Telix. Bell Potter remains the standout bull, maintaining a $6.00 target, while Ord Minnett carries a sell at $3.00. It's a name where opinions genuinely diverge on how fast the commercial ramp will actually convert to profit.

Foolish takeaway

Both stocks are classic high-beta plays in the healthcare space. And this week's rally shows exactly why: regulatory and commercial catalysts can move these ASX healthcare shares fast in either direction.

Telix's Pixclara approval is about as clean a catalyst as it gets, and brokers have responded accordingly. 4DMedical's story is earlier-stage and more contested among analysts.

Investors chasing either move after the fact should weigh the excitement of the headline against the underlying pace of revenue growth — and size accordingly.

The post These 2 ASX healthcare shares just jumped up to 15%. Here's why appeared first on The Motley Fool Australia.

The ASX 200 started in red territory this morning and only got worse over the session. By the time trading ended, the index had lost 0.88% of its value and had settled at 8,672.5 points.

This rather terrible Tuesday for Australian investors came after a similarly downbeat night on Wall Street overnight to kick off the American trading week.

The Dow Jones Industrial Average Index (DJX: .DJI) did start strong, but ended up recording a 0.29% loss.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, dropping 0.56%.

But let's get back to the local markets now and take stock of how the various ASX sectors handled today's difficult trading conditions.

Winners and losers

Despite today's pessimism, we still saw a few sectors make hay.

But first, it was gold shares that copped the worst of it. The All Ordinaries Gold Index (ASX: XGD) ended up crashing 3.08%.

Broader mining stocks had a rough one as well, with the S&P/ASX 200 Materials Index (ASX: XMJ) cratering 2.21%.

Continuing with the commodities theme, energy shares also had a shocker. The S&P/ASX 200 Energy Index (ASX: XEJ) tanked 1.62% this session.

Financial stocks had a day to forget as well, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)'s 1.08% plunge.

Real estate investment trusts (REITs) fared a little better. The S&P/ASX 200 A-REIT Index (ASX: XPJ) still lost 0.59%, though.

Industrial shares were right behind that, with the S&P/ASX 200 Industrials Index (ASX: XNJ) sliding 0.43%.

Our last losers this Tuesday were utilities stocks. The S&P/ASX 200 Utilities Index (ASX: XUJ) ended up slipping down 0.12%.

Let's turn to the green sectors now. Leading the winners were healthcare shares, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 1.5% surge.

Consumer staples stocks held their value, too. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) jumped 0.88% this session.

Its consumer discretionary counterpart was just behind that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) leaping 0.87%.

Communications stocks were spared as well. The S&P/ASX 200 Communication Services Index (ASX: XTJ) advanced 0.32%.

Finally, tech shares managed to stay on the right side of the line, evident by the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s 0.29% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our chart-topper this Tuesday. 4DMedical shares roared 8.72% higher this session to close at $3.74 each.

This came despite no fresh news or announcements from the company today.

Here's how the other top stocks landed their planes:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) has moved back to the top of the table with short interest of 15.9%, up from 15% last week. Short sellers may still have doubts over the uranium developer's path to production and whether stronger uranium demand will arrive quickly enough to support its plans.
• DroneShield Ltd (ASX: DRO) has short interest of 15.4%, which is broadly unchanged week on week. The counter-drone technology company remains a favourite with short sellers, possibly due to its valuation and uncertainty surrounding the ASIC investigation.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease to 12.2%. Its valuation remains very high relative to its current revenue base, which appears to be keeping short sellers interested despite its significant commercial potential.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is down again week on week. Short sellers may still need convincing that its restructuring efforts can deliver the earnings recovery investors are hoping for.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease slightly to 11.7%. Weakness in luxury wine demand and uncertainty around the pace of improvement in the Americas could be keeping short sellers interested.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.6%. The buy now pay later company's strong recovery may have prompted some short sellers to question whether its valuation now leaves enough room for disappointment.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is up slightly week on week. Short sellers may be betting that the lithium market remains difficult for longer, delaying a meaningful recovery in margins and cash flow.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 11.1%. This may reflect concerns over the strength of consumer travel spending and how quickly the company can improve margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 11%, which is up from 10.7% last week. Short sellers may remain cautious over production expectations and whether the uranium price can stay strong enough to support the current outlook.
• IperionX Ltd (ASX: IPX) has entered the top ten with short interest of 10.6%. Short sellers may be questioning the company's valuation and the execution required as it works to scale up its US titanium operations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

By the time trading closed, the index had dropped 0.11% to close at 8,911.4 points.

This miserly session for the local markets came after a horrid return to trading for the US markets following the American long weekend.

The Dow Jones Industrial Average Index (DJX: .DJI) clearly didn't get a proper holiday, dropping 1.18% last night.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did better, but still lost 0.32%.

But let's get back to ASX shares now and examine how today's tough trading conditions affected the various ASX sectors.

Winners and losers

Most of the ASX's sectors were dragged lower this Wednesday. But there were a few exceptions.

First though, it was, somewhat ironically, healthcare shares that had the unhealthiest day. The S&P/ASX 200 Healthcare Index (ASX: XHJ) had tanked 1.5% by the close of trading.

Consumer discretionary stocks also had a shocker, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) plunging 1.14%.

Gold shares were no safe haven either. The All Ordinaries Gold Index (ASX: XGD) cratered 1.06% today.

Communications stocks suffered a steep drop too, as you can see from the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 1.04% dive.

Financial shares were right in front of communications. The S&P/ASX 200 Financials Index (ASX: XFJ) sank 1.02%.

Next came consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) retreating 0.9%.

Tech shares had a day to forget as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) saw its value cut by 0.71%.

Real estate investment trusts (REITs) weren't granted an exception either, evidenced by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.57% dip.

But that's it for the red sectors, so let's get to the winners.

Leading said winners were energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) roared higher today, surging 1.73%.

Mining shares also ran hot, with the S&P/ASX 200 Materials Index (ASX: XMJ) soaring 1.51%.

Utilities stocks were in demand as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 1.01% today.

Finally, industrial shares got out unscathed, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.06% bounce.

Top 10 ASX 200 shares countdown

Gold stock Minerals 260 Ltd (ASX: MI6) was our chart-topper this hump day. Minerals 260 shares exploded 10.37% higher this session to finish at 90.5 cents apiece.

This big move came despite no fresh news or announcements from the company.

Here's how the other top stocks landed their planes today:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The latest short position reports from ASIC, covering the week to 1 September 2026, contain two names that have each had their respective issues.

One company is shorted because it is losing money.

The other is shorted because it made too much, too quickly.

The most shorted ASX shares right now

DroneShield Ltd (ASX: DRO) sits at the top of the list with 15.37% of its register sold short.
Lotus Resources Ltd (ASX: LOT) follows at 15.04%, then 4DMedical Ltd (ASX: 4DX) at 12.37%.
Domino's Pizza Enterprises Ltd (ASX: DMP) is at 11.98% and Treasury Wine Estates Ltd (ASX: TWE) at 11.74%.

The week-on-week movement is worth noting.

CAR Group Limited (ASX: CAR) has dropped out of the top ten entirely, and Elders Ltd (ASX: ELD) has taken its place.

DroneShield's short interest actually rose, from the 14.9% recorded a week earlier, despite the shares already having fallen sharply.

DroneShield: Shorted because it lost money

DroneShield has become the most shorted stock on the market for reasons that become clearer when investors look at the company's annual accounts.

First-half revenue rose 74% to $125.8 million, which is a strong number.

Underneath it, gross margin fell from 65.3% to 60.0%, underlying EBITDA swung to a $12.4 million loss, and the statutory result was a $32.2 million loss, compared with a $2.1 million profit a year earlier.

The company also has an ASIC investigation running into share trading and disclosures from November 2025.

The counter-argument is that the balance sheet is untouched.

DroneShield holds $180 million of cash with no debt and has reaffirmed FY 2026 revenue guidance of $250 million to $270 million.

The shares are down about 74% from their high, which is a lot of scepticism already in the price.

PLS Group: Shorted because it made too much

PLS Group Ltd (ASX: PLS) is the opposite case entirely.

FY26 revenue rose 152% to $1.93 billion, underlying EBITDA reached $1.14 billion at a 59% margin, and the company swung from a $196 million loss to a $526 million profit.

The company resumed dividends with a fully-franked 5 cents per share.

Shares rocketed 30% in August alone and have roughly doubled over twelve months.

So why short it?

Because the result rests on a realised spodumene price of US$1,488 per tonne, more than double the prior year.

FY27 capital expenditure is guided at $620 million to $685 million, roughly double the prior year, which competes directly with the dividend just restored.

Lithium has always been a violently cyclical business, and bears are betting the cycle turns before the capital is spent.

Managing director Dale Henderson said of the results:

That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share.

Foolish takeaway

Short interest is a reading list, not a verdict.

Plenty of heavily shorted companies go on to perform perfectly well, and a crowded short position can unwind violently.

What I take from this particular table is that the most shorted ASX shares are not all the same bet.

For DroneShield, the question is profitability, and for PLS Group, it is the lithium price.

The post What are the most shorted ASX shares on the market right now? appeared first on The Motley Fool Australia.

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.

The top 10 most shorted ASX shares

DroneShield Ltd (ASX: DRO) remains at the top of the table with short interest of 15.4%, which is up week on week. The counter-drone technology company continues to attract plenty of attention from short sellers, possibly due to its valuation and the ongoing ASIC investigation.

Lotus Resources Ltd (ASX: LOT) has seen its short interest jump to 15%. Short sellers may still have concerns over the uranium developer's funding requirements and the execution needed to deliver its growth plans.

4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is down slightly week on week. The medical imaging technology company remains heavily shorted as investors weigh its significant growth potential against a very high valuation.

Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12%. Short sellers may be unconvinced that the pizza chain operator's restructuring and store closures will be enough to restore strong earnings growth.

Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11.8%, which is down slightly week on week. Weakness in parts of the global wine market and uncertainty around the company's recovery continue to give short sellers something to focus on.

PLS Group Ltd (ASX: PLS) has 11.1% of its shares held short, which is broadly unchanged since last week. Short sellers may be expecting lithium prices to be under pressure, which would weigh on margins.

Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.1%. The buy now pay later company's strong share price recovery may have encouraged some investors to bet that expectations are becoming too optimistic.

Elders Ltd (ASX: ELD) has returned to the top ten with short interest of 10.9%. Short sellers may have concerns over rural spending conditions and the outlook for earnings growth across the agribusiness.

Paladin Energy Ltd (ASX: PDN) has seen its short interest fall to 10.7%. Despite this, short sellers may still believe expectations for uranium prices and future production are running ahead of reality.

Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease again to 10.6%. Short sellers may remain cautious on the travel agent due to margin pressure, consumer spending conditions, and disruption to international travel.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

ASIC publishes an aggregated short position report covering every listed security.

It is one a genuinely useful public windows into what professional money is betting against.

This week's table is led by DroneShield Ltd (ASX: DRO) at 14.9% and Lotus Resources Ltd (ASX: LOT) at 13.6%.

Why these ASX shares are being shorted

Short interest above 10% is unusual.

It generally means a fund has done the work, taken a view, and is willing to pay to hold the position.

The list also includes 4DMedical Ltd (ASX: 4DX) at 12.4%, Domino's Pizza Enterprises Ltd (ASX: DMP) at 12.3% and CAR Group Ltd (ASX: CAR) at 12.1%.

Zip Co Ltd (ASX: ZIP) has also entered the top ten at 10.9% after a strong recovery in its share price.

The common thread is not weak businesses, but rather a gap between what the market is paying today and what these companies currently earn.

DroneShield: growth without profit

DroneShield is the most shorted stock on the ASX, and its half-year result showed why the argument remains unresolved.

Revenue jumped 74% to $125.8 million, and recurring revenue climbed 229% to $11.5 million.

The counter-drone specialist also swung to a statutory net loss of $32.2 million, from a $2.1 million profit a year earlier.

Underlying EBITDA was a $12.4 million loss.

Cash and term deposits stood at $180 million at 30 June, so funding is not the immediate concern.

Interestingly, more than half of revenue now comes from Europe and the United Kingdom.

The complications sit elsewhere.

The company changed chief executive during the half, with Angus Bean replacing Oleg Vornik, and Hamish McLennan took over as chairman.

An ASIC investigation also remains unresolved, and that alone keeps some institutions on the sidelines.

Lotus Resources: a ramp-up under scrutiny

Lotus Resources is a different case entirely.

The uranium producer restarted its Kayelekera mine in Malawi and is ramping toward steady-state production of 2.4 million pounds of uranium oxide a year.

The resource stands at 51.1 million pounds, the mine life is around ten years, and all-in sustaining costs are expected near US$45 per pound.

Binding offtake agreements cover 3.5 million pounds of sales between 2026 and 2029.

With uranium spot prices near US$89 per pound, the economics look comfortable on paper.

Short sellers are questioning the timeline rather than the orebody.

Ramp-ups slip, and a developer without steady production has no earnings to defend its valuation.

Short interest here has fallen sharply in recent weeks, which suggests some of that scepticism is already being unwound.

What short interest does not tell you about ASX shares

Plenty of heavily shorted companies go on to perform perfectly well.

Short interest tells you that someone is betting against a business, but not that they are necessarily right.

It also creates a risk of its own, because a crowded short position can unwind violently after a single piece of good news.

Foolish takeaway

I generally treat the short report with a fair bit of caution.

However, when more than one share in ten is sold short, it is worth understanding the bear case properly before you buy.

For DroneShield, that case is about profitability and governance.

For Lotus Resources, it is about execution.

Neither argument is unanswerable, but both are good reasons to approach these ASX shares carefully.

The post Short sellers are targeting these ASX shares. Should you worry? appeared first on The Motley Fool Australia.

During this time, the medical technology company's shares have risen a staggering 360%.

But if you thought the gains may be over, think again.

That's because the team at Bell Potter believes there are still more market-beating returns on offer here over the next 12 months.

What is the broker saying?

Bell Potter notes that 4DMedical released its full-year results last week. And while the company only revealed modest revenue from its lung imaging technology, the broker believes the initial traction is highly meaningful. It said:

Product revenues of $6.9m includes $1.6m in fee for service revenues which we understand includes a portion of revenues billed for CT:VQ on a fee per scan basis. While the quantum of revenues is modest, we regard this initial traction in fee for service revenues as highly meaningful and we expect these revenues will grow exponentially in the coming quarters as awareness grows. 

Elsewhere, the company reported a normalised loss of $33.0m (FY25 loss $35.2m) and net operating cash burn of $31.3m. First revenues are yet to be earned at Simonmed, however, the five academic medical centres contracted for CT:VQ are each using the product on a regular basis.

Looking ahead, the broker sees ongoing traction with clinicians in the US as its major catalyst. It explains:

The major catalyst is the ongoing traction with clinicians in the US. There continues to be a ground swell of support for adoption of CT:VQ particularly amongst pulmonary specialists and interventional pulmonologists in academic hospitals. Inevitably this should radiate to other physicians as evidenced by the Simonmed deal and to some extent in Australia.

Big potential returns for 4DMedical shares

According to the note, in response to the company's results, the broker has retained its speculative buy rating and $6.00 price target on 4DMedical shares.

Based on its current share price of $3.64, this implies potential upside of approximately 65% for investors over the next 12 months.

To put that into context, a $10,000 investment would turn into around $16,500 by this time next year if Bell Potter is on the money with its recommendation.

Commenting on its bullish view of the stock, the broker said:

4DX enters FY27 with good momentum at large hospital groups in the US. We expect on going revenue traction throughout the course of the year. Maintain Buy (Speculative) rating.

All in all, this could make 4DMedical worth considering if you have a high tolerance for risk and want exposure to the medical technology industry.

The post Why 4DMedical shares could still rise 65% appeared first on The Motley Fool Australia.

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.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) has returned to the top of the table with short interest of 14.9%, which is down slightly week on week. The counter-drone technology company remains a popular target for short sellers. This could be partly due to the ongoing uncertainty created by ASIC's investigation.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest fall sharply to 13.6%, but it remains the second most shorted ASX share. The uranium developer's recent capital raising may have eased some pressure, though short sellers still appear to be questioning development timelines and uranium demand.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12.4%, which is broadly unchanged since last week. The medical imaging technology company continues to divide the market. While some investors see a large commercial opportunity, short sellers may be focusing on the gap between its market valuation and its current revenue base.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12.3%. The pizza chain operator is trying to reset the business after a difficult period of store closures, impairments, and weaker trading. Short sellers may be waiting for clearer evidence that the turnaround will succeed.
• CAR Group Limited (ASX: CAR) has short interest of 12.1%, which is flat since last week. This may reflect concerns over the auto listings company's outlook in a difficult operating environment.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 12%. Short sellers may have concerns over weak wine demand and the pace of the Penfolds owner's recovery.
• Paladin Energy Ltd (ASX: PDN) has 11.2% of its shares held short, which is down slightly week on week. Short sellers appear to believe the market is too optimistic on production, costs, and uranium prices.
• PLS Group Ltd (ASX: PLS) has seen its short interest rise to 11.1%. Short sellers may be betting that prices for the battery-making ingredient remain under pressure, which would be bad news for margins.
• Zip Co Ltd (ASX: ZIP) has entered the top ten with short interest of 10.9%. Its strong share price recovery may have led some short sellers to question whether expectations have run too far, especially given weak consumer spending.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 10.8%. Short sellers may still have concerns over Middle East disruption, margins, and travel demand.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a poor start to the week following a subdued session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% lower. In the United States, the Dow Jones edged slightly lower, the S&P 500 fell 0.25%, and the Nasdaq dropped 0.5%.

Oil prices ease

It could be a subdued start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.15% to US$83.40 a barrel and the Brent crude oil price was down 0.45% to US$88.10 a barrel. This was driven by news of some crude flows ​through the Strait of Hormuz.

Buy 4DMedical shares

4DMedical Ltd (ASX: 4DX) shares could be in the buy zone according to Bell Potter. This morning, in response to the healthcare technology company's results, the broker has retained its speculative buy rating and $6.00 price target. It said: "4DX enters FY27 with good momentum at large hospital groups in the US. We expect on going revenue traction throughout the course of the year. Maintain Buy (Speculative) rating."

Gold price sinks

It looks likely to be a poor start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price sank on Friday night. According to CNBC, the gold futures price was down 2.9% to US$4,529.9 an ounce. Traders were selling gold in response to increasing US rate hike bets.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. Among them are health and safety products company Ansell Ltd (ASX: ANN), mineral sands company Iluka Resources Ltd (ASX: ILU), investment management company Pinnacle Investment Management Group Ltd (ASX: PNI), and rail freight company Aurizon Holdings Ltd (ASX: AZJ). The latter will be paying a 10.5 cents per share dividend to shareholders next month on 23 September.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

What did 4DMedical report?

• Revenue from ordinary activities up 21% to $7.1 million
• Adjusted net loss down 7% to $32.9 million
• Statutory net loss expanded to $203 million (from $30.1 million a year ago), driven by significant non-cash items
• Gross margins remained above 90%
• No dividend declared or paid
• Net tangible assets per share improved to $0.17 (from negative $0.02)

What else do investors need to know?

4DMedical's underlying SaaS revenue climbed 23%, supported by strong growth from B2B hospital and radiology partners, third-party AI distributors, and global medical technology companies. The loss at the statutory level included a major non-cash impact—remeasurement of the Pro Medicus loan and associated derivative financial instrument—reflecting complex accounting treatment rather than core business cash outflows.

The company raised $233 million through share placements and finished the year with a robust $278 million in cash, positioning it well for ongoing investment and expansion. No dividends were declared for FY26.

What did 4DMedical management say?

Dr. Andreas Fouras, Managing Director and CEO, commented:

4DMedical has maintained strong momentum throughout FY26, improving our adjusted net loss result and strengthening our balance sheet so we can accelerate future growth initiatives.

What's next for 4DMedical?

Looking ahead, 4DMedical recently completed the acquisition of contextflow GmbH, an Austrian lung cancer screening technology company. The group also led a strategic investment in RevealDx, securing exclusive distribution rights for RevealAI-lung across key markets, including Europe, Australia, and New Zealand.

Management plans to continue scaling its commercial partnerships and integrating new technologies, while building a globally competitive medical imaging and AI platform.

4DMedical share price snapshot

Over the past 12 months, 4DMedical shares have risen nearly 700%, far outpacing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post 4DMedical share price rises as FY26 revenue climbs, losses moderate appeared first on The Motley Fool Australia.

After yesterday's rise kicked off the trading week on a positive note, investors built on that momentum today. The ASX 200 opened higher this morning and stayed in green territory all day, closing with a gain of 0.68%. That leaves the index at 9,164.6 points.

This terrific Tuesday for the local markets came after a mixed start to the American trading week on Wall Street overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) was in an accommodating mood, rising 0.26%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) had a more Garfield-esque Monday, closing 0.76% lower.

Let's get back to the ASX now and take stock of how the different ASX sectors fared this session.

Winners and losers

Today's market rises were near-universal, with only two sectors missing out.

The first, and worst, of those sectors was energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) gave up an early lead to finish down 0.78% today.

The other red sector was real estate investment trusts (REITs), with the S&P/ASX 200 A-REIT Index (ASX: XPJ) sinking 0.16%.

Let's get to the happier sectors now. Leading the charge were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a blowout, rocketing up 2.25%.

Consumer staples stocks ran hot as well, illustrated by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)'s 2.11% surge.

Healthcare stocks were also popular. The S&P/ASX 200 Healthcare Index (ASX: XHJ) soared 1.4% higher this Tuesday.

Financial shares joined the party, with the S&P/ASX 200 Financials Index (ASX: XFJ) shooting up 0.94%.

Consumer discretionary stocks were also at the festivities. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) galloped up 0.91% today.

Next came utilities shares, as you can see by the S&P/ASX 200 Utilities Index (ASX: XUJ)'s 0.59% jump.

Industrial stocks were right behind that. The S&P/ASX 200 Industrials Index (ASX: XNJ) added 0.58% to its total this session.

Communications shares had a day to remember as well, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) advancing 0.4%.

Gold stocks didn't miss out. The All Ordinaries Gold Index (ASX: XGD) enjoyed a 0.34% lift today.

Finally, mining shares managed to find buyers, evidenced by the S&P/ASX 200 Materials Index (ASX: XMJ)'s 0.3% bump.

Top 10 ASX 200 shares countdown

Defence company Electro Optic Systems Holdings Ltd (ASX: EOS) was our top performer this Tuesday. Electro Optic shares exploded 23.02% higher today to close at $10.58 each.

This astonishing showing followed the company's latest earnings, which were obviously a delight for the market.

Here's how the other top stocks tied up at the dock:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) has returned to the top of the table with short interest of 17.2%, which is up sharply week on week. Short sellers may be focusing on funding risk, the company's development pathway, and uncertainty around the uranium market after its heavily discounted capital raising.
• DroneShield Ltd (ASX: DRO) has seen its short interest ease to 15%. Short sellers still appear to have concerns over the ASIC investigation into the counter-drone technology company, as well as valuation risk.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 12.6%, which is down slightly week on week. This suggests some short sellers remain unconvinced by the pizza chain operator's turnaround plans.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest rise to 12.4%. The medical technology company remains heavily shorted due to its elevated valuation and modest revenue base. FY 2026 revenue came in at just $7.2 million.
• CAR Group Limited (ASX: CAR) has short interest of 12.1%, which is up week on week. Its recent result was well received by the market, but short sellers may still have concerns over its valuation, auto market conditions, and the potential impact of artificial intelligence on online classifieds over time.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 11.8%. Short sellers may be targeting the Penfolds owner due to weak luxury wine demand, excess supply in the Americas, and uncertainty around the pace of its recovery.
• Paladin Energy Ltd (ASX: PDN) has 11.3% of its shares held short, which is down slightly week on week. This uranium producer continues to be targeted despite a positive update. This suggests that short sellers may still be wary of execution risk and uranium market volatility.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall to 11%. This elevated short interest may be due to concerns over pressure in leisure travel, softer consumer spending, and the company's ability to keep improving margins.
• PLS Group Ltd (ASX: PLS) has entered the top ten with short interest of 10.7%. Short sellers may be expecting a slower recovery in prices for the battery-making ingredient, which could weigh on earnings and cash flow.
• Elders Ltd (ASX: ELD) has also entered the top ten with short interest of 10.6%. This agribusiness company may be attracting short sellers due to uncertainty around rural conditions, farmer spending, and the timing of an earnings recovery.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) remains at the top of the table with short interest of 15.7%, which is up again week on week. Short sellers may still have concerns over the ASIC investigation into the counter-drone technology company, as well as valuation risk.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 12.7%. This suggests some short sellers remain unconvinced by the pizza chain operator's turnaround plans, particularly given its store closures, write-downs, and the challenge of restoring sales momentum.
• Boss Energy Ltd (ASX: BOE) has short interest of 12%, which is down slightly week on week. Short sellers may still have doubts over whether the uranium miner can deliver consistently from Honeymoon and support a stronger production outlook beyond the next couple of years.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest fall materially to 11.8%. However, the medical technology company remains heavily shorted due to its elevated valuation and modest revenue base. FY 2026 revenue came in at just $7.2 million.
• Flight Centre Travel Group Ltd (ASX: FLT) has 11.6% of its shares held short, which is down slightly week on week. Short sellers may be focused on pressure in leisure travel, softer consumer spending, and the disruption caused by the Middle East conflict.
• Paladin Energy Ltd (ASX: PDN) has 11.5% of its shares held short, which is down week on week. This uranium producer continues to be targeted despite a positive quarterly update, which suggests short sellers may still be wary of execution risk and uranium market volatility.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest fall to 11.3%. Some short sellers appear to have closed positions after the uranium developer's deeply discounted capital raising and heavy share price decline.
• CAR Group Limited (ASX: CAR) has short interest of 11.3%, which is down week on week. Its recent result was well received by the market, but short sellers may still have concerns over the long-term impact of artificial intelligence on online classifieds.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 11%. Regulatory uncertainty appears to remain a key concern, with investors watching closely for progress across the radiopharmaceuticals company's US approval pipeline.
• Treasury Wine Estates Ltd (ASX: TWE) has returned to the top ten with short interest of 10.9%. Short sellers may be targeting the Penfolds owner due to weak luxury wine demand, excess supply in the Americas, and the uncertainty created by its latest restructuring.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

4DMedical shares slipped 2% to $3.83 on Friday, extending their losses to 15% over the past five trading days. The shares are now down around 4% year to date.

More significantly, they have fallen almost 50% since hitting an all-time high of $7.55 in April.

So, can 4DMedical shares eventually reclaim that peak?

Commercialisation is the big story

The biggest catalyst behind the remarkable rise of 4DMedical shares has been growing confidence in the company's commercial prospects.

The company has developed proprietary respiratory imaging technology that produces four-dimensional lung scans, potentially giving doctors significantly more information than traditional imaging methods. Its technology has applications across chronic respiratory diseases, lung cancer, and surgical planning.

Importantly, management is increasingly shifting from proving the technology to commercialising it.

Medallion Financial Group remains positive on the outlook, particularly around 4DMedical's CT:VQ platform. The technology uses existing CT scans to provide additional information about lung function and received US FDA clearance in 2025.

Since then, 4DMedical has secured deployments with six leading US academic medical centres. Medallion also highlighted a bipartisan US bill proposing a Department of Veterans Affairs pilot program using 4D functional lung imaging software, calling it an encouraging development.

Contracts could unlock more growth

4DMedical has secured several significant US contracts and partnerships over the past year. One of the most notable is its agreement with SimonMed, which could significantly expand access to its CT:VQ technology across the United States.

Management of 4DMedical shares believes the deal could increase its addressable market to around US$3 billion, spanning major healthcare providers and government agencies.

The company is also investing in artificial intelligence capabilities, potentially creating further applications for its technology within respiratory care.

Can the stock hit record highs again?

That's the million-dollar question. For the shares to revisit their April peak, investors will likely want to see evidence that commercial momentum is translating into sustainable revenue growth and improving financial performance.

The next major test arrives on 27 August, when 4DMedical reports its FY26 results.

Like many emerging healthcare technology companies, 4DMedical is prioritising growth and commercialisation rather than large profits today. That makes its valuation highly dependent on future execution.

If adoption accelerates and the company's US expansion continues to gain traction, another run towards $7.55 may not be impossible. But investors will need to see the numbers start catching up with the story first.

The post 4DMedical shares are up 670% — but why have they halved? appeared first on The Motley Fool Australia.

For a business with Pro Medicus' track record, that sort of sell-off is hard to ignore. But is the discount genuine, or is the market warning investors about something?

The business hasn't suddenly broken

Pro Medicus is a healthcare informatics company providing medical imaging software to hospitals, imaging centres and healthcare groups.

And here's the interesting bit: its underlying demand drivers haven't disappeared. Hospitals are still generating enormous volumes of medical scans, while radiologists need increasingly sophisticated technology to access and interpret those images.

That's where Pro Medicus' Visage software comes in. The platform is designed to help clinical teams access medical images quickly across large health networks, giving Pro Medicus shares a powerful competitive position.

The numbers are still doing the talking

Pro Medicus delivered another cracking first half of FY26. Revenue climbed 28.4% to $124.8 million, while underlying profit before tax jumped 29.7% to $90.7 million. Even better, EBIT margins expanded from 72% to 73%.

Reported net profit surged more than 230%, although investors shouldn't get too excited about that headline number because much of the increase came from an unrealised gain on its investment in 4D Medical Ltd (ASX: 4DX).

The more important numbers are arguably sitting on the balance sheet. Pro Medicus finished the half with $221.8 million in cash and investments, and no debt.

There's plenty more runway

The US remains a massive opportunity for Pro Medicus shares. The company secured seven new contracts worth more than $280 million at minimum volumes during the first half, including a major agreement with University of Colorado Health.

The company's transaction-based model is particularly attractive because revenue can grow as examination volumes increase, even after a hospital has signed up.

And Pro Medicus isn't stopping at radiology. Visage is expanding into cardiology, while management continues working on artificial intelligence and solutions for other medical specialties.

An Ohio State renewal, for example, expanded its relationship to include Visage 7 Workflow and Cardiology Imaging.

So, is the healthcare tech stock a buy?

That's the million-dollar question. The quality of the business is difficult to dispute. Strong margins, a debt-free balance sheet, recurring contract wins and significant US growth opportunities make Pro Medicus an intriguing long-term story.

But there's a catch. Even after the sell-off, the valuation demands continued execution. If growth slows materially, investors could discover that the shares weren't as cheap as they looked.

Pro Medicus reports its FY26 results on 18 August. That result could be the next big test of whether beaten-down Pro Medicus shares represent a genuine opportunity. Or is it simply a stock that still has further to fall.

The post Are Pro Medicus shares now too cheap to ignore? appeared first on The Motley Fool Australia.

4DMedical shares closed yesterday trading for $4.40. In morning trade on Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) respiratory imaging technology company are changing hands for $4.30 apiece, down 2.3%.

DroneShield shares closed yesterday trading for $2.18, with shares in the ASX 200 drone defence stock currently trading for $2.21 apiece, up 1.4%.

4DMedical and DroneShield shares top the most shorted list

If you've been keeping an eye on our most shorted ASX shares list, you'll know that DroneShield shares are the most shorted this week, with a short interest of 15.1%.

4DMedical shares have the ignominious honour of being the second most shorted on the ASX, with a short interest of 13%.

Short sellers – who make money when a company's share price falls – are largely targeting the two companies over valuation concerns.

Now, depending on when investors bought shares in these stocks (or when they opted to short sell them), they may have made or lost a lot on that investment.

Despite having tumbled 36.8% from the 10 April record closing high of $6.80, 4DMedical shares remain up 795.8% since this time last year.

DroneShield shareholders have had a tougher time of it (though generally not those short sellers). Shares in the drone defence company have plunged 66.5% since the stock closed at its own record high of $6.60 on 9 October and are down 44% since this time last year.

However, if you'd bought DroneShield stock at the market closing price of $1.695 a share on 31 July, you'd be sitting on a gain of 30.4% today. (Or a hefty loss for recent short sellers.)

Looking ahead, however, Plato Investment Management's Dave Allen believes the ASX 200 stocks have further to fall, with Allen holding short positions in both.

Why these ASX 200 shares could have further to fall

Commenting on the short position he recently opened on 4DMedical shares, Allen compared the valuation to Elon Musk's space company.

"At a market capitalisation of around $2.5 billion and revenue of less than $6 million, the stock makes SpaceX look cheap," he said (quoted by the Australian Financial Review).

"Anything less than flawless execution and rapid commercialisation will see 4DMedical's share price come under intense pressure," he added.

As for his short position on DroneShield shares, which he noted provided disappointing full-year 2026 guidance, Allen said, "Turning sentiment will take time, and we think the share price could still have more to fall before any sustained recovery."

Sounding a word of caution for investors considering betting against DroneShield, VP Capital's John So said:

DroneShield has already sold off meaningfully, and while it hasn't landed the large contract wins some offshore drone-defence peers have, it would only take one surprise contract to trigger a rebound.

The post Why this expert is betting against 4DMedical and DroneShield shares appeared first on The Motley Fool Australia.