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) is still the most shorted ASX share with short interest 19.1%. This is down slightly week on week again. Short sellers are betting on lithium prices remaining weak for the foreseeable future.
- IDP Education Ltd (ASX: IEL) has 14.2% of its shares held short, which is down slightly week on week again. Short sellers have been going after this language testing and student placement company due to unfavourable student visa changes in key markets.
- Paladin Energy Ltd (ASX: PDN) has short interest of 13.8%, which is down slightly since last week. Short sellers appear to believe that the market is too optimistic on uranium prices.
- Boss Energy Ltd (ASX: BOE) has 13.5% of its shares held short, which is up again week on week. It is another uranium miner that short sellers are targeting.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.9%, which is down week on week. Short sellers appear to believe the lithium miner will disappoint in FY 2025.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise week on week to 12.6%. Weak graphite prices means that this graphite miner continues to burn through its cash reserves. Short sellers may believe another capital raising will be needed in the near future.
- Liontown Resources Ltd (ASX: LTR) has 10.3% of its shares held short, which is up slightly week on week. It is yet another lithium miner that short sellers are going after.
- Deep Yellow Limited (ASX: DYL) has 9.9% of its shares held short, which is flat weak on week. It is yet another uranium stock that has caught the eye of short sellers recently.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest ease once again to 9.8%. Short sellers may be closing positions after the rare earths producer's shares hit a 52-week high.
- Cettire Ltd (ASX: CTT) has 8.7% of its shares held short, which is down week on week again. Short sellers will be disappointed to have seen this online luxury products retailer's shares rocket 60% since this time last month.
