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 20.4%. This is down slightly week on week again. Short sellers have been successfully targeting the lithium miner due to falling battery materials prices.
- IDP Education Ltd (ASX: IEL) has 13.8% of its shares held short, which is up again since last week. This language testing and student placement company looks set to have a very tough year as it battles student visa changes in key markets.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest increase again to 12.8%. Short sellers may believe it won't be too long until this graphite miner has to raise funds for the umpteenth time in recent years due to low battery material prices.
- Liontown Resources Ltd (ASX: LTR) has 10.8% of its shares held short, which is up week on week. This lithium miner has just started mining activities in a very difficult market.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest ease to 10.6%, which is down slightly week on week. Weak rare earths prices are weighing heavily on Lynas' profitability.
- Strike Energy Ltd (ASX: STX) has short interest of 10.5%, which is down week on week. This energy company was just dumped out of the ASX 200 index.
- Chalice Mining Ltd (ASX: CHN) has short interest of 10.1%, which is down week on week again. Short sellers have been closing positions after the mineral exploration company announced plans to look for copper and gold.
- Cettire Ltd (ASX: CTT) has 9.8% of its shares held short, which is up week on week. Short sellers have been loading up on this luxury products retailer's shares after a disappointing full year result release.
- Sayona Mining Ltd (ASX: SYA) has short interest of 9.7%, which is flat week on week. This lithium miner continues to sell lithium for less than it costs to produce.
- Boss Energy Ltd (ASX: BOE) has entered the top ten with short interest of 9.5%. It is also worth noting that two other ASX uranium stocks are in 11th and 12th spot. Short sellers appear to believe that the market is too bullish on the chemical element.
