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 17.8%, which is down significantly week on week. Short sellers are betting on lithium prices remaining lower for longer.
- Paladin Energy Ltd (ASX: PDN) has short interest of 15.8%. This is up strongly since last week. Short sellers will have been celebrating last week after the uranium miner downgraded its production guidance and scrapped its sales guidance. Its shares are down 42% in a month now.
- Boss Energy Ltd (ASX: BOE) has 15.4% of its share held short, which is flat since last week. It is another uranium stock that short sellers have successfully been targeting.
- IDP Education Ltd (ASX: IEL) has 14.7% of its shares held short, which is down week on week. Short sellers have had success shorting this language testing and student placement company's shares due to tough trading conditions caused by student visa changes.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly week on week to 13.2%. This graphite miner has been struggling with low graphite prices. So much so, its operations are partially suspended to reduce its cash burn.
- Mineral Resources Ltd (ASX: MIN) has short interest of 10%, which is down slightly week on week. This mining and mining services company's shares have fallen heavily since announcing the results of an investigation into allegations against its founder and CEO, Chris Ellison.
- Deep Yellow Limited (ASX: DYL) has 9.9% of its shares held short, which is flat week on week again. This is another uranium stock that short sellers are targeting.
- Liontown Resources Ltd (ASX: LTR) has 9.7% of its shares held short, which is down week on week again. This lithium miner's shares have lost 50% of their value this year amid falling lithium prices.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest remain ease to 9.6%. Weak rare earths prices is likely to be the reason for this shorting.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 9.4%, which is up week on week again. This pizza chain operator announced that its long-serving CEO is stepping down earlier this month.
