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 with short interest of 21.5%. This is down slightly week on week again. Short sellers appear to believe that lithium prices will be staying lower for longer.
- IDP Education Ltd (ASX: IEL) has 16.3% of its shares held short, which is up week on week again. This may be due to the language testing and student placement company battling tough trading conditions caused by student visa changes.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13.1%, which is down week on week. This graphite miner continues to burn through cash due to weak battery materials prices.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase week on week again to 11.9%. Last week, the travel agent revealed that it expects record sales in FY 2024. Short sellers didn't appear fazed by this.
- Liontown Resources Ltd (ASX: LTR) has 10.9% of its share held short, which is up week on week. This lithium developer is making good progress with the Kathleen Valley Lithium Project. Despite this, short sellers continue to target the company.
- Core Lithium Ltd (ASX: CXO) has short interest of 8.2%, which is flat week on week. This lithium miner has suspended mining operations due to weak lithium prices.
- Sayona Mining Ltd (ASX: SYA) has short interest of 8.1%, which is also flat week on week. This lithium miner hasn't suspended its operations despite selling its lithium for $500 less per tonne than it costs to produce.
- Westgold Resources Ltd (ASX: WGX) has short interest of 8.1%, which is up strongly since last week. Short sellers seem to be unsure about the gold miner's plan to merge with Canada-based Karoa Resources.
- Chalice Mining Ltd (ASX: CHN) has entered the top ten with short interest of 7.7%. This mineral exploration company's shares have lost 81% of their value over the last 12 months. It seems that short sellers don't believe the declines are over.
- Strike Energy Ltd (ASX: STX) has returned to the top ten with short interest of 7.55%. This gas company's shares have been hammered this year due to disappointment over drilling at the SE-3 well.
