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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.
This is because I believe it is well 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:
- Core Lithium Ltd (ASX: CXO) continues as the most shorted ASX share despite its short interest easing slightly to 11.1%. This lithium miner's shares have come under significant pressure after its production guidance fell well short of expectations.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase a touch to 10.1%. Short sellers aren't giving up on this one despite recent guidance upgrades.
- IDP Education Ltd (ASX: IEL) has 9.5% of its shares held short, which is down week on week again. Short sellers appear to believe this language testing and student placement company could struggle after losing its monopoly in Canada.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8%, which is down week on week. This appears to be due to concerns over the consumer spending outlook.
- Syrah Resources Ltd (ASX: SYR) has short interest of 7.9%, which is down slightly week on week again. Weak graphite prices have been weighing heavily on its operations.
- Select Harvests Ltd (ASX: SHV) has 7.9% of its shares held short, which is flat week on week. Short sellers don't appear to believe this almond producer's poor performance will improve in a hurry.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 7.7%, which is up week on week. Short sellers may believe that the company's valuation is stretched if lithium prices tumble as many expect.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest ease slightly to 7.4%. This struggling semiconductor company's crazy valuation and lack of sales have been attracting the smart money.
- Lake Resources N.L. (ASX: LKE) has short interest of 7.1%, which is down slightly since last week. This lithium developer's shares have lost almost 90% of their value over the last 12 months. Short sellers don't appear to believe the declines are over.
- Mesoblast Ltd (ASX: MSB) has entered the top ten with short interest of 7.1%. There are concerns that this biotechnology company may need another capital raising after the US FDA rejected its latest application and requested another trial.
