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:
- Pilbara Minerals Ltd (ASX: PLS) continues to be the most shorted ASX share with 20.2% of its shares held short, which is down slightly week on week. Short sellers are bearish due to falling lithium prices.
- Syrah Resources Ltd (ASX: SYR) has a short interest of 14.4%, which is flat week on week. This has been driven by weak graphite demand from the electric vehicle market.
- Core Lithium Ltd (ASX: CXO) has a short interest of 12.3%, which is up sharply week on week. Short sellers will be celebrating after the lithium miner's shares crashed last week. This was driven by news that Core Lithium could suspend production in response to weak lithium prices.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest rise to 9.5%. Short sellers appear concerned with this gold miner's recent acquisition spree.
- IDP Education Ltd (ASX: IEL) has 8.7% of its shares held short, which is down week on week. Student visa changes and the loss of its monopoly in Canada have weighed on sentiment.
- Sayona Mining Ltd (ASX: SYA) has 8.6% of its shares held short, which is down week on week. It is another lithium miner that short sellers have been targeting.
- Deep Yellow Limited (ASX: DYL) has seen its short interest lift to 8.6%. Short sellers may believe that the market is too bullish on uranium.
- Flight Centre Travel Group Ltd (ASX: FLT) has 8.5% of its shares held short, which is down week on week. There are fears that current trading conditions are unfavourable for revenue margins.
- Peninsula Energy Ltd (ASX: PEN) has entered the top ten with a short interest of 7.7%. It is another ASX uranium share that short sellers are targeting.
- Weebit Nano Ltd (ASX: WBT) is back in the top ten with a short interest of 7.5%. The smart money appears to believe this semiconductor company is another Brainchip Holdings Ltd (ASX: BRN) style meme stock.
