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:
- Paladin Energy Ltd (ASX: PDN) has become the most shorted ASX share after its short interest rose to 14.7%. This uranium miner's shares crashed deep into the red last month after it downgraded its production guidance and scrapped its sales guidance.
- Boss Energy Ltd (ASX: BOE) has 14.6% of its share held short, which is flat since last week. It is another uranium stock that short sellers have been targeting. They appear to believe that prices won't be as strong as expected and/or see potential operational and ramp up risks.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly week on week again to 13.4%. This graphite miner has been an easy target for short sellers. It has been burning through its cash reserves after being forced to suspend production intermittently due to low graphite prices.
- IDP Education Ltd (ASX: IEL) has 13.1% of its shares held short, which is down materially week on week. This language testing and student placement company's shares hit a multi-year low last month amid tough trading conditions due to student visa changes.
- Pilbara Minerals Ltd (ASX: PLS) ended its long run as the most shorted ASX share after reporting a sizeable reduction in short interest to 11.6%. This could be a sign that short sellers believe that the lithium miner's shares have now bottomed.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.4%, which is up week on week again. This mining and mining services company's shares have been sold off recently due to lithium weakness and allegations over the conduct of its founder and CEO, Chris Ellison.
- Deep Yellow Limited (ASX: DYL) has 10.3% of its shares held short, which is up week on week. It is another uranium stock that short sellers have been targeting this year.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 10.2%, which is up slightly week on week. This pizza chain operator has been struggling of late. It seems that short sellers don't believe change is coming just yet.
- Liontown Resources Ltd (ASX: LTR) has 9.4% of its shares held short, which is up week on week. Weak lithium prices continue to weigh heavily on sentiment (and profitability).
- Adriatic Metals (ASX: ADT) has short interest of 8.8%, which is down week on week. Short sellers appear to be bettering on the miner cutting its FY 2025 guidance for the Vares Silver Project in Bosnia and Herzegovina.
