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:

• Lotus Resources Ltd (ASX: LOT) is now the most shorted ASX share with short interest of 16%, which is up week on week. This uranium producer’s shares have come under pressure following a disastrous March quarter which saw weak production and a sizeable cash burn. Many in the market are now expecting another capital raising later this year.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to have doubts over this pizza chain operator’s turnaround plan.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease to 15.3%. This radiopharmaceuticals company’s shares have come under significant pressure over the past 18 months amid US FDA approval challenges.
• Polynovo Ltd (ASX: PNV) has 14.4% of its shares held short, which is up week on week. This medical device company’s shares have a premium valuation that short sellers don’t appear to believe is justified.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.9%, which is down week on week. This quick service restaurant operator’s US operations have been struggling, casting doubts on its future in the key market.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.3%, which is flat since last week. There are major concerns over this uranium miner’s production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has 12.9% of its shares held short, which is up week on week. Short sellers aren’t giving up on the wine giant despite it recently releasing an encouraging trading update.
• Zip Co Ltd (ASX: ZIP) has 12.2% of its shares held short. This is up slightly since last week. Short sellers continue to target the buy now pay later provider despite it delivering a strong update this month.
• DroneShield Ltd (ASX: DRO) has 11.1% of its shares held short, which is up since last week. Last week, the counter-drone technology company revealed that it was the subject of an ASIC investigation.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.9%, which is up week on week. Short sellers may believe that the Middle East conflict will weigh on the travel agent’s growth.

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, DroneShield, 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, 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.