June 26, 2025 • 4 mins
What are the most shorted stocks in the ASX?
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Episode Transcript
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Speaker 1 (00:03):
Welcome to Ask Fear and Greed, where we answer questions
about business, investing, economic politics, and more. Are Michael Thompson
and Hello Sean Ail. Hello Michael Sean Today, I wanted
to ask you about something that is a bit mysterious,
right about shorted stocks. So I want to know one
of the most shortened stocks. Ok going to say shorted socks. Anyway,
(00:29):
it's hard. It's like a shorted stock. It's a Fear
and Greed tongue twister. Okay, what are the most shorted
stocks on the AOX And maybe we should start with
a definition of what a shortened stock actually is.
Speaker 2 (00:42):
Yes, Well, the outcome of shorting a stock means that
an investor is taking a bet that the share price
will fall a little bit. It means known as short selling.
It's we're an investor borrow shares of a stock and
then immediately sells them, hoping to buy them back later
at lower price and make that profit. That's the idea
of it. So when you look at the most shortened
(01:04):
stock on the AX, people say, you could follow that.
We are not an investment podcast. We are not recommending
this strategy for or against in any sense. But people
look for shortened stocks, and they don't buy them because
I think, you know, someone in the know thinks they're
going to four. At the moment. Uranium stocks the most shorted,
Boss Energy, Paladin. I mean they've run hard. They've doubled
(01:27):
since early March in the case of Boss Energy, seventy
five percents in April. In the case of Paladin, that
sort of came on the back of positive science for
nuclear energy. Big tech companies financing nuclear Trump policies, have
they run too hard, So some investors obviously think so,
so they're taking a punt that those uranium stocks will drop.
Another one in the top ten is actually DPLA. So
(01:50):
through the top ten shorted stocks are uranium stocks. The
next group are the lithium companies, the mineral resources Bell
where the Pilgrim min Uels Linetown Resources. It isn't good, Michael,
when you're being shortened and your share price has already
fallen sixty percent in the past year. So that's Minray's
(02:11):
Minimal Resources in Pilborough. There are other reasons as well,
but you're down sixty percent and people taking a bet
that you're going to go even further. Not a good sign.
Next on the list is a company called Lifestyle Communities.
It's a business that builds residential communities for the over fifties.
Fallen by more than twenty percent already this year. Rounding
out the top ten, Medical Device Group, Polynovo, IDP, Education
(02:35):
and Education Group, Tech Group, Silex Systems. They're the companies
that are shortened most on the ASEX at the moment.
Speaker 1 (02:42):
Okay, how then does it play out after that? Do
shortened stocks mostly then fall in price?
Speaker 2 (02:51):
I mean, I don't actually know whether the trend is
your friend, and that happens. I can give a couple
of examples where it has happened and where it hasn't happened. Okay,
So Domino's Pizza It for many months was one of
the most shortened stocks on the market. Its share price
in recent years has gone from about one hundred and
(03:12):
sixty bucks to twenty bucks. Dominos is one of the
worst performing stocks in the past twelve months. So you
would say the short sellers at that point have made
a lot of money off Dominis. Then let's go to
Domain Holdings. So Demain Holdings. It was shortened earlier in
the year, then got to take over a bit from
a US propaty group. Share price went for the roof
short sellers did their money. So I don't know that
(03:35):
there's actual data to say short sellers generally win, but
there's an example where they won big and an example
where they lost big.
Speaker 1 (03:45):
God that is a It feels like a risky strategy, right.
Speaker 2 (03:49):
I mean it's not for the fainthearted, because.
Speaker 1 (03:51):
Whether inexperienced or those without knowledge.
Speaker 2 (03:55):
Yeah, because when you're actually borrowing shares and then sell them,
you're really in it. Yeah, you know, up to your eyeballs.
So it's definitely one for professional investors, not for you
and I.
Speaker 1 (04:12):
But at least now we understand it a little bit
better thanks to that stellar explanation. Thank you very much.
Speaker 2 (04:18):
Thanks Michael.
Speaker 1 (04:19):
Remember, if you've got your own question that you would
like us to answer, when I say us, it's really
kind of the royal US, isn't it, Idiot? I pose
it to you and then you answer it and contribute. Yeah,
two contributes. Thanks, thanks a lot. All right, if you've
got your own one, then please send it on through
the website Fear and Greed dot com, dot are you,
(04:40):
or go to any of the social media platforms Facebook,
Instagram LinkedIn, send your question on through and we'll get
onto an asap.
Speaker 2 (04:47):
I'm Michael Thompson.
Speaker 1 (04:48):
This is as fear and greed
Welcome to Ask Fear and Greed, where we answer questions
about business, investing, economic politics, and more. Are Michael Thompson
and Hello Sean Ail. Hello Michael Sean Today, I wanted
to ask you about something that is a bit mysterious,
right about shorted stocks. So I want to know one
of the most shortened stocks. Ok going to say shorted socks. Anyway,
(00:29):
it's hard. It's like a shorted stock. It's a Fear
and Greed tongue twister. Okay, what are the most shorted
stocks on the AOX And maybe we should start with
a definition of what a shortened stock actually is.
Speaker 2 (00:42):
Yes, Well, the outcome of shorting a stock means that
an investor is taking a bet that the share price
will fall a little bit. It means known as short selling.
It's we're an investor borrow shares of a stock and
then immediately sells them, hoping to buy them back later
at lower price and make that profit. That's the idea
of it. So when you look at the most shortened
(01:04):
stock on the AX, people say, you could follow that.
We are not an investment podcast. We are not recommending
this strategy for or against in any sense. But people
look for shortened stocks, and they don't buy them because
I think, you know, someone in the know thinks they're
going to four. At the moment. Uranium stocks the most shorted,
Boss Energy, Paladin. I mean they've run hard. They've doubled
(01:27):
since early March in the case of Boss Energy, seventy
five percents in April. In the case of Paladin, that
sort of came on the back of positive science for
nuclear energy. Big tech companies financing nuclear Trump policies, have
they run too hard, So some investors obviously think so,
so they're taking a punt that those uranium stocks will drop.
Another one in the top ten is actually DPLA. So
(01:50):
through the top ten shorted stocks are uranium stocks. The
next group are the lithium companies, the mineral resources Bell
where the Pilgrim min Uels Linetown Resources. It isn't good, Michael,
when you're being shortened and your share price has already
fallen sixty percent in the past year. So that's Minray's
(02:11):
Minimal Resources in Pilborough. There are other reasons as well,
but you're down sixty percent and people taking a bet
that you're going to go even further. Not a good sign.
Next on the list is a company called Lifestyle Communities.
It's a business that builds residential communities for the over fifties.
Fallen by more than twenty percent already this year. Rounding
out the top ten, Medical Device Group, Polynovo, IDP, Education
(02:35):
and Education Group, Tech Group, Silex Systems. They're the companies
that are shortened most on the ASEX at the moment.
Speaker 1 (02:42):
Okay, how then does it play out after that? Do
shortened stocks mostly then fall in price?
Speaker 2 (02:51):
I mean, I don't actually know whether the trend is
your friend, and that happens. I can give a couple
of examples where it has happened and where it hasn't happened. Okay,
So Domino's Pizza It for many months was one of
the most shortened stocks on the market. Its share price
in recent years has gone from about one hundred and
(03:12):
sixty bucks to twenty bucks. Dominos is one of the
worst performing stocks in the past twelve months. So you
would say the short sellers at that point have made
a lot of money off Dominis. Then let's go to
Domain Holdings. So Demain Holdings. It was shortened earlier in
the year, then got to take over a bit from
a US propaty group. Share price went for the roof
short sellers did their money. So I don't know that
(03:35):
there's actual data to say short sellers generally win, but
there's an example where they won big and an example
where they lost big.
Speaker 1 (03:45):
God that is a It feels like a risky strategy, right.
Speaker 2 (03:49):
I mean it's not for the fainthearted, because.
Speaker 1 (03:51):
Whether inexperienced or those without knowledge.
Speaker 2 (03:55):
Yeah, because when you're actually borrowing shares and then sell them,
you're really in it. Yeah, you know, up to your eyeballs.
So it's definitely one for professional investors, not for you
and I.
Speaker 1 (04:12):
But at least now we understand it a little bit
better thanks to that stellar explanation. Thank you very much.
Speaker 2 (04:18):
Thanks Michael.
Speaker 1 (04:19):
Remember, if you've got your own question that you would
like us to answer, when I say us, it's really
kind of the royal US, isn't it, Idiot? I pose
it to you and then you answer it and contribute. Yeah,
two contributes. Thanks, thanks a lot. All right, if you've
got your own one, then please send it on through
the website Fear and Greed dot com, dot are you,
(04:40):
or go to any of the social media platforms Facebook,
Instagram LinkedIn, send your question on through and we'll get
onto an asap.
Speaker 2 (04:47):
I'm Michael Thompson.
Speaker 1 (04:48):
This is as fear and greed
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