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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 with short interest of 19.5%, which is up slightly week on week. Short sellers continue to bet on lithium prices remaining under pressure for the foreseeable future.
- Boss Energy Ltd (ASX: BOE) has 15.4% of its share held short. This is up week on week yet again. Short sellers are also betting big against uranium right now and appear to believe the market is wrong to be so bullish.
- IDP Education Ltd (ASX: IEL) has 14.6% of its shares held short, which is up slightly week on week again. This language testing and student placement company is struggling with student visa changes in key markets. This is expected to lead to a notable drop in profits in FY 2025.
- Paladin Energy Ltd (ASX: PDN) has short interest of 13.9%. This is up slightly since last week once again. This uranium stock disappointed the market last week after releasing a poor quarterly update.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise week on week to 13%. This graphite miner's shares rose last week after releasing its quarterly update. Although it continues to burn through its cash reserves due to weak graphite prices, it shored up its balance sheet with a US$150 million binding loan agreement.
- Liontown Resources Ltd (ASX: LTR) has 10.1% of its shares held short, which is down week on week again. Short sellers aren't giving up on this lithium miner despite its shares falling 50% in 12 months.
- Deep Yellow Limited (ASX: DYL) has 9.9% of its shares held short, which is up slightly since last week. It is another uranium stock that short sellers are targeting.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest fall slightly to 9.9%. Weak rare earths prices is likely to be the reason short sellers are targeting this miner.
- Mineral Resources Ltd (ASX: MIN) has short interest of 9.8%, which is down week on week. This mining and mining services company's shares will be on watch today when it releases the results of an investigation into allegations against its founder and CEO.
- Domino's Pizza Enterprises Ltd (ASX: DMP) shares have returned to the top ten after a lengthy absence with short interest of 8.9%. Short sellers may believe that the pizza chain operator's turnaround isn't going as well as hoped.
