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.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) remains the most shorted ASX share despite its short interest easing from 15.2% to 14.5%. Short sellers may still be concerned about the ASIC investigation into the counter-drone technology company’s previous market disclosures and share trading.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest climb from 13.3% to 14%. The uranium producer is working towards steady-state production at Kayelekera, but short sellers may be questioning how quickly it can achieve its targets and at what cost.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.1%, which is largely unchanged week on week. Boss recently revised its long-term development plan for Honeymoon, and short sellers may be sceptical about the production and cost assumptions underpinning its outlook.
• PLS Group Ltd (ASX: PLS) has moved higher up the table, with 12.8% of its shares held short. Despite improving lithium market conditions, short sellers could be betting that the recovery in prices will be difficult to sustain.
• Zip Co Ltd (ASX: ZIP) has seen its short interest ease slightly to 12.6%. Short sellers may still be concerned that elevated interest rates could put pressure on the buy now pay later company’s customers and funding costs, potentially weighing on growth and profitability.
• IperionX Ltd (ASX: IPX) has short interest of 12.5%, down from 12.8%. The titanium producer continues to make technological progress, but short sellers may believe commercial-scale production and the earnings needed to justify its valuation remain some way off.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has 11.7% of its shares held short, down slightly week on week. Although its restructuring has improved franchisee profitability and cash flow, short sellers appear to doubt whether sales can recover quickly enough to support a sustained earnings turnaround.
• Lynas Rare Earths Ltd (ASX: LYC) has returned to the top ten with short interest of 11.5%. This could reflect concerns over the cost and execution risks associated with its proposed acquisition of Meteoric Resources and the development of its Caldeira rare earths project in Brazil.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest increase from 11% to 11.5%. With the production ramp-up at Langer Heinrich completed, short sellers may now be focusing on uranium price expectations and the costs associated with its future growth projects.
• 4DMedical Ltd (ASX: 4DX) has slipped to tenth place after its short interest fell from 11.9% to 11.1%. Despite increasing commercial adoption of its lung imaging technology, short sellers may believe its valuation is difficult to justify given its relatively modest revenue base.

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

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• Could the DroneShield share price reach $2 in 2027?
• 9 ASX 200 shares upgraded by brokers this week
• 6 ASX shares to buy in today’s weak market: experts

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Temple & Webster vs Harvey Norman shares

If you’re on the hunt for a value play in the battered Australian retail sector, Temple & Webster Group Ltd (ASX: TPW) and Harvey Norman Holdings Ltd (ASX: HVN) have both taken a hammering lately. But these are very different retailers. Should you bet on the nimble pure-play online player or the diversified retail giant with an eye-catching dividend yield? Here’s how I stack up Temple & Webster vs Harvey Norman shares for value investors, based on the latest available figures.

The case for Temple & Webster

Temple & Webster is Australia’s leading online-only furniture and homewares retailer. Since launching in 2011, its growth story has revolved around shaking up traditional home buying. According to its most recent company profile, the platform stocks over 200,000 products and counts more than 1 million subscribers. While numbers like these signal scale and reach, I’d note they come from profile info, not up-to-the-minute financials.

A few fundamentals catch my eye:

• Price-to-earnings (P/E) ratio is a hefty 123.05.
• No dividend paid – all earnings are being retained for growth or shoring up the business.
• Its year-to-date (YTD) share price return is a bruising -68.8%, showing how hard sentiment has turned against tech and online retail models recently.

This pure digital play grew quickly when lockdowns favoured online shopping, but with normality returning, the harsh downturn in its share price is a reminder that markets can turn fast for disruptors.

The case for Harvey Norman

Harvey Norman is an established household name and one of Australia’s largest retail conglomerates, spanning furniture, electronics, computers, and entertainment goods. Beyond its core stores, it also owns the Domayne and Joyce Mayne brands in Australia. According to its latest public profile, it operates more than 270 outlets across eight countries, plus a significant property portfolio, especially in Australia and New Zealand.

Key fundamentals I notice:

• Much more modest P/E ratio at 9.56.
• Temptingly high ~6.8% dividend yield, fully franked at 100%.
• YTD share price return of -37.7% shows Harvey Norman shares have still been hit hard, but not to the same extent as Temple & Webster.

Harvey Norman also has plenty of runs on the board when it comes to paying dependable, franked dividends. In tough markets, that’s a comfort for value investors.

Valuation comparison

There’s a dramatic contrast between these two on current valuation metrics. Here’s how they stack up side-by-side:

Metric	Temple & Webster	Harvey Norman
Market Cap	$504.7 million	$5.08 billion
P/E Ratio	123.05	9.56
Dividend Yield	0.00%	6.79% (100% franked)
Earnings Per Share (EPS)	$0.035	$0.424
YTD Return	-68.8%	-37.7%

Note: Temple & Webster’s high P/E ratio relative to its modest EPS reveals it’s priced for big expected growth, while Harvey Norman’s low P/E (for its sector) looks more classic value. Both have negative returns this year, but Temple & Webster’s losses have been far steeper. For income seekers, only Harvey Norman is paying a dividend—and a sizeable, franked one.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Temple & Webster closed at $4.33 on 7 October 2026, up 1.4% for the day but still deeply in the red year-to-date (-68.8%).
• Harvey Norman closed at $4.08 on 7 October 2026, gaining 0.7% for the session and sporting a year-to-date decline of -37.7%.
• Both companies have seen some choppy trading in the last fortnight, but the magnitude of Temple & Webster’s drawdown highlights the sharper fall from grace.

Which is the better buy?

Both of these retailers are bruised, but in my eyes, Harvey Norman stands out as the better bet for value investors right now. The reasons? Its underlying valuation looks far more attractive, with a P/E of 9.56 compared to Temple & Webster’s lofty 123—and it’s paying a substantial fully franked dividend. If I’m looking for value, I want some measure of income and downside protection.

Temple & Webster’s growth story is tantalising, but its sky-high valuation and the absence of a dividend make it more suited to growth investors willing to stomach big swings and back a post-punishment rebound. The negatives? That massive YTD fall signals sentiment could take a while to repair.

For my money, Harvey Norman’s long record of payouts, more defensive business model, and low P/E make it my pick of these two beaten-down retailers for a value-focused investor. If you’re hunting for bargains in a challenged sector, I’d lean toward Harvey Norman for its combination of income, value, and resilience.

The post Temple & Webster vs Harvey Norman: Which beaten-down ASX retailer offers better value? appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares with ex-dividend dates next week
• Adairs vs Temple & Webster: Which ASX retail stock wins for October?
• Where I’d invest in ASX shares after the recent RBA rate rise
• Where to invest $20,000 in ASX dividend shares for passive income
• Temple & Webster vs Nick Scali: Which furniture share is better?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in a positive fashion. The benchmark index rose 0.65% to 8,716.6 points.

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

ASX 200 expected to rise again

The Australian share market looks set for a good start to the week following a strong 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% higher. In the United States, the Dow Jones was up 0.85%, the S&P 500 rose 0.6%, and the Nasdaq pushed 0.65% higher.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$91.85 a barrel and the Brent crude oil price was up 0.4% to US$104.72 a barrel. Rising tensions in the Middle East may be behind this rise.

Buy Life360 shares 

Life360 Inc. (ASX: 360) shares could be undervalued according to Bell Potter. This morning, the broker has retained its buy rating on the location technology company’s shares with a trimmed price target of $32.00. It said: “We have reduced the multiple we apply in our EV/EBITDA valuation from 25x to 22.5x due to the continued weakness in software and app stocks both domestically and offshore. […] The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.’

Gold price storms higher

It could be a strong start to the week for ASX 200 gold shares such as Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.4% to US$4,216.3 an ounce. This may have been driven by bargain buying after the precious metal touched a two-month low earlier in the week.

Buy EOS shares

It could be a good time to buy Electro Optic Systems Holdings Ltd (ASX: EOS) shares. This morning, Bell Potter has retained its buy rating on the defence and space stock with an improved price target of $13.80. It said: “EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS.”

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

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Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.