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 its long run as the most shorted ASX share with short interest of 21.2%. This is down slightly week on week. It appears that short sellers are not expecting lithium prices to recover any time soon.
- IDP Education Ltd (ASX: IEL) has 16.7% of its shares held short, which is up week on week. Short sellers have been targeting this language testing and student placement company due to student visa changes in a number of key markets. They may believe that this will lead to IDP falling short of expectations.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13%, which is down slightly week on week. This graphite miner has been battling weak battery materials prices and burning through its cash reserves.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound week on week to 11.6%. Short sellers are not being put off by Flight Centre recently revealing that it expects record sales in FY 2024.
- Liontown Resources Ltd (ASX: LTR) has 9.9% of its share held short, which is down week on week again. Short sellers have been closing positions this month after Liontown made good progress with its Kathleen Valley Lithium Project.
- Australian Clinical Labs Ltd (ASX: ACL) has returned to the top ten with short interest of 9.3%. This pathology services company is guiding to another sharp decline in earnings in FY 2024.
- Sayona Mining Ltd (ASX: SYA) has short interest of 9.1%, which is up sharply week on week. This lithium miner is burning through cash at present by spending more to produce its lithium than it receives for it.
- Westgold Resources Ltd (ASX: WGX) has short interest of 8.8%, which is up for a third week in a row. Short sellers appear unsure about the gold miner's plan to merge with Canada-based Karoa Resources.
- Chalice Mining Ltd (ASX: CHN) has short interest of 8.3%, which is up week on week. Short sellers continue to target the mineral exploration company despite the favourable Federal Budget.
- Core Lithium Ltd (ASX: CXO) has short interest of 7.8%, which is flat week on week. Core Lithium has been forced to suspended mining activities to conserve cash due to weak prices.
