Here 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 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 after its short interest increased to 22.9%. This ASX uranium stock is expected to return from a trading halt today with some big news relating to its Kayelekera Project. Short sellers appear to believe it will be bad news.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 14.5%. The pizza chain operator continues to be targeted by short sellers, possibly on the belief that its turnaround will take longer than hoped.
• Boss Energy Ltd (ASX: BOE) has short interest of 14.4%, which is up week on week. The driver of this appears to be the uranium miner’s uncertain production outlook beyond 2026.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.9%, which is down since last week. This radiopharmaceuticals company has been struggling with US FDA approvals over the past 18 months. Short sellers may believe the trend will continue.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.5%, which is down slightly week on week. This quick service restaurant operator recently announced the closure of its loss-making US operations.
• Treasury Wine Estates Ltd (ASX: TWE) has 12.4% of its shares held short, which is down week on week. This wine giant is battling tough trading conditions as consumers battle the cost of living crisis.
• CAR Group Limited (ASX: CAR) has short interest of 12%, which is up slightly since last week. There are concerns that higher interest rates and rising fuel costs could weigh on the automotive market in the near term.
• DroneShield Ltd (ASX: DRO) has short interest of 11.8%, which is down week on week. An ASIC investigation into some of the counter-drone technology company’s announcements and insider share sales may be behind this.
• Flight Centre Travel Group Ltd (ASX: FLT) has 11.5% of its shares held short, which is up week on week. Last week, the travel agent downgraded its earnings guidance. It blamed the downgrade on the Middle East conflict.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest increase to 11.3%. This may be due to valuation concerns. The medical technology company now has a lofty valuation following a stunning gain over the past 12 months.

The post Here 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, 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 CAR Group Ltd, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.