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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 run as the most shorted ASX share with short interest of 20.6%. This is down slightly week on week again. This lithium giant's shares are down almost 40% over the past 12 months. Short sellers don't appear to believe the declines are over.
- IDP Education Ltd (ASX: IEL) has 13.4% of its shares held short, which is up again since last week. This language testing and student placement company's shares have come under significant pressure due to a crackdown on student visas in key markets.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest increase again to 12.5%. This graphite miner continues to struggle with low battery material prices and is burning through its cash reserves at a rapid rate.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest ease to 10.8%. This has been driven by weak rare earths prices which are weighing heavily on Lynas' profitability.
- Strike Energy Ltd (ASX: STX) has short interest of 10.8%, which is flat week on week. This is likely to have been driven by the poor performance at Walyering and some disappointing exploration updates. Though, a promising drilling update last week won't have gone well with short sellers.
- Liontown Resources Ltd (ASX: LTR) has 10.7% of its share held short, which is down sharply week on week. Short sellers have been targeting this lithium miner due to concerns that lithium prices will remain low for some time to come.
- Chalice Mining Ltd (ASX: CHN) has short interest of 10.3%, which is down week on week again. Short sellers may be closing positions after the mineral exploration company announced plans to look for copper and gold.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise week on week to 9.8%. Short sellers appear to believe that the market is too optimistic on uranium prices.
- Sayona Mining Ltd (ASX: SYA) has short interest of 9.7%, which is flat week on week. This lithium miner's shares have fallen heavily due to its decision to continue selling lithium for less than its production cost.
- Cettire Ltd (ASX: CTT) has 9.4% of its shares held short, which is down week on week. Short sellers will be pleased with this one. Last week, the luxury products retailer's shares crashed deep into the red (again) following a disappointing full year result release.
