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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) remains the most shorted ASX share by some distance after its short interest lifted week on week to 20.5%. Short sellers don't appear to believe that lithium prices are going to improve any time soon.
- IDP Education Ltd (ASX: IEL) has 14.3% of its shares held short, which is up again week on week. This language testing and student placement company's shares have come under pressure due to concerns over student visa changes in key markets.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest ease slightly to 12.4%. This graphite miner continues to burn through its cash reserves due to weak battery material prices.
- Liontown Resources Ltd (ASX: LTR) has 11.3% of its shares held short, which is up week on week. Short sellers appear to believe that weak lithium prices will weigh on this lithium miner's performance for the foreseeable future.
- Paladin Energy Ltd (ASX: PDN) has short interest of 11.2%, which is up week on week. Short sellers have increased positions despite Russia suggesting that it might halt exports of the chemical element and reduce supply.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest rise again to 11.1%. Weak rare earths prices are putting pressure on its performance.
- Mineral Resources Ltd (ASX: MIN) has entered the top ten with short interest of 11.1%. It is yet another lithium miner that short sellers are targeting. And with iron ore also under pressure, they appear to believe the company could be facing a very tough period.
- Cettire Ltd (ASX: CTT) has 10.4% of its shares held short, which is up week on week again. This luxury products retailer's shares have come under pressure following a disappointing update.
- Boss Energy Ltd (ASX: BOE) has entered the top ten with 10.3% of its share held short. Short sellers seem to think that uranium prices won't be as strong as the market is expecting.
- Sayona Mining Ltd (ASX: SYA) has short interest of 9.9%, which is up week on week. This is yet another lithium miner that short sellers are betting on declining further.
