Short sellers are targeting a familiar group of ASX shares this week, and two names are in sharp focus.

ASIC publishes an aggregated short position report covering every listed security.

It is one a genuinely useful public windows into what professional money is betting against.

This week’s table is led by DroneShield Ltd (ASX: DRO) at 14.9% and Lotus Resources Ltd (ASX: LOT) at 13.6%.

Why these ASX shares are being shorted

Short interest above 10% is unusual.

It generally means a fund has done the work, taken a view, and is willing to pay to hold the position.

The list also includes 4DMedical Ltd (ASX: 4DX) at 12.4%, Domino’s Pizza Enterprises Ltd (ASX: DMP) at 12.3% and CAR Group Ltd (ASX: CAR) at 12.1%.

Zip Co Ltd (ASX: ZIP) has also entered the top ten at 10.9% after a strong recovery in its share price.

The common thread is not weak businesses, but rather a gap between what the market is paying today and what these companies currently earn.

DroneShield: growth without profit

DroneShield is the most shorted stock on the ASX, and its half-year result showed why the argument remains unresolved.

Revenue jumped 74% to $125.8 million, and recurring revenue climbed 229% to $11.5 million.

The counter-drone specialist also swung to a statutory net loss of $32.2 million, from a $2.1 million profit a year earlier.

Underlying EBITDA was a $12.4 million loss.

Cash and term deposits stood at $180 million at 30 June, so funding is not the immediate concern.

Interestingly, more than half of revenue now comes from Europe and the United Kingdom.

The complications sit elsewhere.

The company changed chief executive during the half, with Angus Bean replacing Oleg Vornik, and Hamish McLennan took over as chairman.

An ASIC investigation also remains unresolved, and that alone keeps some institutions on the sidelines.

Lotus Resources: a ramp-up under scrutiny

Lotus Resources is a different case entirely.

The uranium producer restarted its Kayelekera mine in Malawi and is ramping toward steady-state production of 2.4 million pounds of uranium oxide a year.

The resource stands at 51.1 million pounds, the mine life is around ten years, and all-in sustaining costs are expected near US$45 per pound.

Binding offtake agreements cover 3.5 million pounds of sales between 2026 and 2029.

With uranium spot prices near US$89 per pound, the economics look comfortable on paper.

Short sellers are questioning the timeline rather than the orebody.

Ramp-ups slip, and a developer without steady production has no earnings to defend its valuation.

Short interest here has fallen sharply in recent weeks, which suggests some of that scepticism is already being unwound.

What short interest does not tell you about ASX shares

Plenty of heavily shorted companies go on to perform perfectly well.

Short interest tells you that someone is betting against a business, but not that they are necessarily right.

It also creates a risk of its own, because a crowded short position can unwind violently after a single piece of good news.

Foolish takeaway

I generally treat the short report with a fair bit of caution.

However, when more than one share in ten is sold short, it is worth understanding the bear case properly before you buy.

For DroneShield, that case is about profitability and governance.

For Lotus Resources, it is about execution.

Neither argument is unanswerable, but both are good reasons to approach these ASX shares carefully.

The post Short sellers are targeting these ASX shares. Should you worry? appeared first on The Motley Fool Australia.

More reading

• Don’t panic if these 9 ASX 200 shares fall today
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares with 33% to 61% upside post-results: experts
• Why 4DMedical shares could still rise 65%
• These are the 10 most shorted ASX shares

Motley Fool contributor Mark Verhoeven 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 Domino’s Pizza Enterprises and DroneShield. The Motley Fool Australia has recommended CAR Group Ltd and 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.

ASX mining shares finished strongly in August, driven by stronger commodity prices and robust FY26 earnings. Among some of the biggest names are South32 Ltd (ASX: S32), Mineral Resources Ltd (ASX: MIN) and BHP Group Ltd (ASX: BHP).

Let’s take a look at how the mining giants are tracking today. And what brokers tip for the next 12 months.

Buy South32 shares

The ASX miner announced a substantial jump in its ore reserve estimate at its Sierra Gorda mine in late-August. The increase comes after significant drilling to define the orebody, providing more certainty over future production. The update extends the mine’s reserve life by another five years, to 2045.

The company also posted a robust FY26 financial results last week. The miner posted a 1% increase in revenue from continuing operations, a 28% increase in EBITDA, and a 55% increase in underlying earnings.

At the time of writing, the shares are flat for the day at $5.16 a piece. South32 shares are now up around 45% for the year to date and are 89% higher than 12 months ago.

Going forward, brokers are positive about the outlook for the stock. Market Index data shows the majority have a buy rating but after a recent rally, the $5.09 average target price now implies a downside of around 1%.

Buy Mineral Resources shares

The lithium miner posted its strongest-ever annual results last week. Mineral Resources reported a 44% year-on-year increase in revenue, an 183% increase in underlying EBITDA, an 831% increase in underlying NPAT, and a 236% increase in reported NPAT for FY26.

Management also announced it would bring back shareholder dividends. For FY26, the miner will pay a fully-franked dividend of 83 cents per share.

Mineral Resources said its record performance was driven by growth in the company’s Mining Services division, the ramp-up of Onslow Iron to nameplate capacity, and improved results in its lithium operations.

At the time of writing, the lithium miner’s shares are up around 0.5% for the day and are changing hands at $64.79 a piece. For the year-to-date the shares are now 17% higher, and they’re a huge 76% above trading levels seen this time last year.

Going forward, it looks like analysts are positive about the shares. But after a strong rally this year we could be reaching around fair value. Market Index data shows the majority have a buy rating on Mineral Resources shares, and the $65.36 average target price implies a potential 1% upside ahead.

Hold BHP shares

BHP started trending higher in early August as the market grew more bullish on copper prices.

But the share price picked up pace after the miner reported its record FY26 earnings results on the 18th of August. The mining giant posted a strong operational performance across all its key segments. It also announced an impressive 27% increase in its underlying EBITDA. 

Investors were clearly thrilled with the update and many rushed to snap up a stake in the mining company.

At the time of writing, BHP shares are up largely flat for the day so far, and are changing hands for $66.20 a piece.

But it looks like the experts are now concerned that the ASX mining shares have now passed their peak. Market Index data shows the majority have a hold rating on BHP shares. The $61.78 average target price now implies a potential downside of around 7%, at the time of writing.

The post Buy, hold, sell: South32, Mineral Resources, BHP shares appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares to buy in September 2026
• Want to bank the boosted BHP dividend? You’d better hurry!
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• BHP shares are pulling back from a record high. What now for ASX investors?
• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Spring has arrived, which can be a good excuse to take another look at a portfolio and consider what might be worth adding.

If I had $20,000 ready to invest today, I would put it behind three businesses I think have plenty of room to grow over the years ahead.

Here’s what I would buy.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would probably receive the largest portion of my money.

Its Visage software is already used by some of the largest healthcare systems in the US, yet the company estimates it still has only around 11% of that market.

I think that is a powerful combination. Pro Medicus has proved its technology can handle the demands of major hospital networks, while most of the potential US market remains available.

The opportunity is also expanding beyond radiology. Cardiology and enterprise imaging could allow Visage to handle more of the medical images produced across a healthcare organisation. Artificial intelligence may create further opportunities as hospitals look for faster and better ways to work with growing volumes of imaging data.

Over a long timeframe, I think Pro Medicus can win many more customers while becoming increasingly valuable to those it already serves.

James Hardie Industries plc (ASX: JHX)

James Hardie gives me exposure to a very different type of long-term opportunity.

This ASX share is best known for fibre cement building products, particularly in North America, where its products are used across housing construction and renovation.

What interests me is the amount of existing housing that will need to be repaired, renovated, or upgraded over the coming decades.

Homeowners do not need a housing boom for that spending to happen. Ageing properties eventually need work, and James Hardie’s products can benefit when owners replace siding or invest in improving their homes.

The company’s acquisition of AZEK also expands its presence across outdoor living products such as decking and railing. I think that gives James Hardie more ways to participate when homeowners spend money improving the outside of their properties.

Sigma Healthcare Ltd (ASX: SIG)

My final investment would go into Sigma Healthcare.

Following its merger with Chemist Warehouse, investors now have exposure to one of Australia’s best-known pharmacy and retail businesses.

I think the next stage of the story could increasingly happen overseas. Chemist Warehouse already has a growing presence in New Zealand and has started testing the UK market. If its value-focused retail model travels successfully, the addressable opportunity becomes far larger than Australia alone.

There is still room to grow domestically through stores, online sales, pharmacy services, and the wider distribution business.

I think Sigma now has several avenues to become a much larger healthcare and retail company over time.

Foolish takeaway

With $20,000 to invest this spring, I would be comfortable putting the entire amount to work across these three ASX shares.

Most importantly, I would be buying with several years in mind and giving each business time to pursue the opportunities already in front of it.

The post Where I’d invest $20,000 in ASX shares this spring appeared first on The Motley Fool Australia.

More reading

• How much could the Pro Medicus share price rise in the next year?
• Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60%
• Top brokers name 3 ASX shares to buy next week
• ASX 200 mining shares outperform in final week of earnings season
• 4 ASX shares scoring upgrades in the final week of earnings season

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.