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.

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:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the Australian share market with short interest of 12.4%. Investors appear concerned the pandemic could be accelerating the shift away from department stores to online shopping.
• Speedcast International Ltd (ASX: SDA) has short interest of 11.7%. This communications satellite technology provider’s shares remain suspended as it declares itself bankrupt.
• Webjet Limited (ASX: WEB) has seen its short interest jump to 10.7%. Short sellers may be targeting the online travel agent due to potential delays in the recovery of the domestic travel market because of the outbreak in Victoria.
• Inghams Group Ltd (ASX: ING) has 9.5% of its shares held short, which is up slightly week on week. The poultry company looks set to deliver a disappointing result in FY 2020 due to an unfavourable shift in its sales mix.
• Nearmap Ltd (ASX: NEA) has seen its short interest edge lower again to 8.2%. Short sellers continue to close their positions in the aerial imagery and location data technology company after its resilient performance during the pandemic.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest reduce to 8.1%. Short sellers have been going after the regional bank following a soft half year result and a weak outlook. But they may feel the worst is now factored into its share price.
• Galaxy Resources Limited (ASX: GXY) has 8% of its shares held short, which is down week on week. Short sellers have been targeting Galaxy and fellow lithium miners due to sustained weakness in the price of the battery making ingredient.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest fall to 7.8%. Short sellers may be going after this biopharmaceutical company due to its lofty valuation.
• Orocobre Limited (ASX: ORE) is back into the top ten with short interest of 7.1%. As with Galaxy, ultra low lithium prices have been weighing on this lithium miner’s performance.
• Freedom Foods Group Ltd (ASX: FNP) is in the top ten with 6.9% of its shares held short. The diversified food company recently suspended its shares until 30 October while it looks through its accounts for potential fraud.

More reading

• ASX 200 Weekly Wrap: Rocketing BNPL shares fail to stop ASX 200 slide
• Vocus and 1 other ASX share to buy in July
• 3 large cap ASX shares primed for expansion and M&A activity
• Why the Freedom Foods share price will be suspended until 30 October
• These ASX shares are the winners and losers in the “new normal”

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Freedom Foods Group Limited and Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re a fan of growth shares, then you’re in luck. The Australian share market is home to a good number of companies growing their earnings at a quicker than average rate.

Two top growth shares that I think investors ought to consider buying are listed below. Here’s why I rate them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

I think this pizza chain operator could be a top option for growth investors. It is the master franchise holder for Domino’s in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark. While its shares have been strong performers this year, I would still invest due to its positive long term outlook.

Domino’s is aiming to grow its global store network by 7% to 9% per annum for the next 3 to 5 years. At the same time, it is targeting same store sales growth of 3% to 6% per annum over the same period. If the company can deliver on both these targets, then it should lead to strong profit growth over the next five years. This could make the Domino’s share price a market beater over the period.

ResMed Inc (ASX: RMD)

Another growth share to consider buying is ResMed. I’m a big fan of the medical device company due to its focus on the growing sleep treatment market. It is also benefiting from increased demand for ventilators at present because of the pandemic.

In respect to the sleep treatment market, the company has previously suggested that there could be upwards of 1 billion people impacted by sleep apnoea worldwide. With the vast majority of these sufferers undiagnosed, it gives ResMed a very long runway for growth in the future. And given the high quality of its portfolio and its high level of investment in research and development, I believe it is well-placed to capture the growing demand. In light of this, I feel the ResMed share price could be a market beater over the 2020s.

More reading

• Why Domino’s and Nanosonics shares could be fantastic buy and hold options
• Altium and these ASX 200 shares could be quality buy and hold options
• Why it’s time to rotate out of JB Hi-Fi share price and these popular ASX stocks: Macquarie
• Goldman Sachs names the ASX retail shares to buy and the ones to avoid
• 3 high quality ASX 100 shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These ASX growth shares could be market-beaters during the 2020s appeared first on Motley Fool Australia.

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On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and finished a disappointing week with a decline. The benchmark index fell 0.6% to 5,919.2 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch

ASX 200 set to surge higher.

The ASX 200 looks set to surge higher this morning after a positive end to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the week 95 points or 1.6% higher. On Wall Street the Dow Jones rose 1.4%, the S&P 500 climbed 1.05%, and the Nasdaq pushed 0.65% higher. Positive data from Gilead’s coronavirus treatment trial boosted markets.

Oil prices drop lower.

The coronavirus treatment news appears to have given oil prices a boost as well, much to the delight of shareholders of energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL). According to Bloomberg, the WTI crude oil price jumped 2.4% to US$40.55 a barrel and the Brent crude oil price climbed 2.1% to US$43.24 a barrel.

Gold price softens.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after the gold price softened. According to CNBC, the spot gold price fell 0.1% to US$1,801.9 an ounce. Improving investor sentiment weighed on the safe haven asset.

Afterpay rated as neutral.

Analysts at Goldman Sachs are calling time on the Afterpay Ltd (ASX: APT) share price rally. According to a note out of the investment bank, the broker has given the payments company’s shares a neutral rating with an improved price target of $70.15. While the broker is very positive on the company’s prospects, it feels its shares are fully valued at the current level.

TechnologyOne short attack.

Hong Kong-based GMT Research is back and is targeting enterprise software company TechnologyOne Ltd (ASX: TNE). According to the AFR, GMT Research claims Technology One is using accounting tricks to pull forward revenue and profits. This is “artificially creating growth and hiding a major slowdown.”

More reading

• Analysis: is the Woolworths share price a buy?
• Top brokers name 3 ASX 200 shares to buy next week
• Top brokers name 3 ASX 200 shares to sell next week
• Is it too late to invest in gold?
• The market is going long on the Afterpay share price but shorting its weaker rival

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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