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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. This week the lithium miner has short interest of 21.1%, which is up week on week. Concerns over the outlook for lithium prices is likely to be behind this.
- IDP Education Ltd (ASX: IEL) has 12.8% of its shares held short, which is up slightly since last week. Short sellers continue to target this language testing and student placement company which is being impacted negatively by student visa changes in key markets.
- Liontown Resources Ltd (ASX: LTR) has 11.1% of its share held short, which is up week on week. Liontown will soon be commencing lithium production in an extremely tough environment.
- Syrah Resources Ltd (ASX: SYR) has short interest of 10.9%, which is up week on week. Last week, this graphite miner released its quarterly update and revealed further cash burn. Syrah ended the period with a cash balance of US$82 million, which is down from US$99 million at the end of March.
- Chalice Mining Ltd (ASX: CHN) has short interest of 10.7%, which is up week on week. While this mineral exploration company owns a world class project, it will be many years until it commences production. And who knows what commodity prices will be at that point.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 10.5%. Short sellers will have been pleased to see the travel agent's shares tumble last week following the release of a weaker than expected trading update.
- Westgold Resources Ltd (ASX: WGX) has short interest of 9.7%, which is flat week on week. There are doubts over the gold miner's proposed merger with Canada-based Karoa Resources.
- Sayona Mining Ltd (ASX: SYA) has short interest has lifted week on week to 9.6%. Last week, this lithium miner released its quarterly update and once again revealed that it is selling its product for less than it costs to produce. As a result, it is burning through its cash reserves.
- Lynas Rare Earths Ltd (ASX: LYC) has returned to the top ten with short interest of 9.6%. Weak rare earths prices have been weighing on this miner's performance this year.
- Cettire Ltd (ASX: CTT) has 9.4% of its shares held short, which is up significantly week on week. This online luxury products retailer is facing tough trading conditions and criticism of its business model and customer policies.
