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:
- Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top spot after its short interest increased a touch to 10.4%. Short sellers may have concerns over revenue margin and consumer spending headwinds.
- Syrah Resources Ltd (ASX: SYR) has short interest of 9.1%, which is up materially since last week. Weak graphite prices have been weighing heavily on its Balama operations, which are now on care and maintenance.
- IDP Education Ltd (ASX: IEL) has 9.1% of its shares held short, which is down week on week. Short sellers will have been disappointed to see this language testing and student placement company's shares shoot higher following its results release last week.
- Lake Resources N.L. (ASX: LKE) has short interest of 8.6%, which is up materially since last week. Short sellers aren't letting up on this struggling lithium developer despite a huge decline this year.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 8.6%, which is up week on week again. Short sellers appear confident that lithium prices are going to tumble.
- Elders Ltd (ASX: ELD) has seen its short interest increase to 8.6%. The agribusiness company has been struggling due to tough trading conditions.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8.5%, which is up week on week again. This may be due to concerns over the consumer spending outlook.
- Core Lithium Ltd (ASX: CXO) has seen short interest fall materially to 8.4%. Some short sellers may believe this lithium miner's shares have finally bottomed.
- Imugene Limited (ASX: IMU) has entered the top ten with short interest of 8.1%. This biotech company's shares have lost 70% of their value over the last 12 months. Short sellers appear to believe they could keep falling.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest rise again to 8%. Short sellers will have been pleased to see Brainchip sneak a very poor half-year result out after the market close on Friday.
