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) remains the most shorted ASX share despite its short interest easing a touch to 20.5%. Short sellers have been targeting the lithium miner due to weak battery materials prices.
- Syrah Resources Ltd (ASX: SYR) has short interest of 17%, which is up week on week again. Concerns over weak graphite prices is weighing on its shares.
- Core Lithium Ltd (ASX: CXO) has short interest of 12.9%, which is up slightly week on week. This lithium miner recently announced plans to suspend production to conserve cash.
- Sayona Mining Ltd (ASX: SYA) has 11.5% of its shares held short, which is up week on week again. This lithium miner's latest update revealed that its costs were significantly higher than the price it was receiving for its product.
- IDP Education Ltd (ASX: IEL) has 10.4% of its shares held short, which is up week on week. Short sellers have been targeting this language testing and student placement company's shares following student visa changes and the loss of its monopoly in Canada.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest rise to 9.1%. This may be due to integration risks from recent acquisitions.
- Deep Yellow Limited (ASX: DYL) has seen its short interest rise to 8.9%. Short sellers will have been disappointed to see the company's shares rocket 25% last week amid concerns over uranium shortages.
- Weebit Nano Ltd (ASX: WBT) has short interest of 8.6%, which is up week on week again. Last week, this semiconductor company reported quarterly revenue of less than $0.5 million. It has a market capitalisation of almost $700 million.
- Flight Centre Travel Group Ltd (ASX: FLT) has 8.4% of its shares held short, which is flat week on week. Short sellers seem to believe the market's growth and revenue margin assumptions are too ambitious.
- Chalice Mining Ltd (ASX: CHN) has short interest of 7.2%, which is up week on week. Short sellers continue to target this mineral exploration company's shares even after they have crashed 85% over the last 12 months.
