These are the 10 most shorted ASX shares

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well 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:

• Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share with short interest of 16.1%, which is down since last week. There are concerns over this uranium miner’s production outlook.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to believe the struggling pizza chain operator’s turnaround strategy will fail. Last month, it reported a 2.5% decline in same store sales during the first half.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 14.4%. This wine giant has been battling very tough trading conditions. Short sellers may not believe a change is coming in the near term.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This burrito seller’s shares crashed last month in response to the release of a disappointing half-year result. It continues to make a loss in the United States, which was supposedly its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 12.9%, which is up since last week. This medical device company could have been targeted due to its lofty valuation.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.4%, which is flat since last week. This radiopharmaceuticals company has been facing delays with FDA approvals.
• IPH Ltd (ASX: IPH) has short interest of 12.3%, which is up week on week. This intellectual property services company has been battling weaker volumes and market share losses.
• IDP Education Ltd (ASX: IEL) has 11.8% of its shares held short, which is up week on week. Changes to visa rules in key markets have weighed on sentiment and this student placement and language testing company’s performance.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.8%, which is up week on week. There are concerns that the travel agent won’t deliver on its revenue margin targets.
• Nanosonics Ltd (ASX: NAN) has entered the top ten with short interest of 10.3%. Last month, this infection prevention company posted a 3% decline in profit before tax during the first half. Short sellers may believe this trend will continue.

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

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Nanosonics, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, IPH Ltd , Nanosonics, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.