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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:
- Paladin Energy Ltd (ASX: PDN) remains the most shorted ASX share after its short interest rose week on week to 15%. Short sellers appear to believe that there are further declines to come from this uranium miner which recently downgraded its production guidance and scrapped its sales guidance.
- Boss Energy Ltd (ASX: BOE) has 14.1% of its share held short, which is down since last week. Short sellers may believe this uranium producer is going to disappoint with the ramp up of its operations.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest ease slightly to 13.2%. This graphite miner has been burning through its cash reserves after being forced to suspend production at the Balama operation intermittently due to weak graphite prices.
- IDP Education Ltd (ASX: IEL) has 12.9% of its shares held short, which is down slightly week on week. This language testing and student placement company's shares have been sold off due to challenging trading conditions because of student visa changes.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.8%, which is up week on week yet again. This mining and mining services company's shares have lost 50% of their value in 2024. Lithium weakness and allegations over the conduct of its founder and CEO, Chris Ellison, are behind this decline.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 11.6%, which is flat week on week. This lithium miner's shares are down over 40% this year, much to the delight of short sellers.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 10.7%, which is up week on week again. This pizza chain operator has struggled to turnaround its fortunes, and this has not escaped the attention of short sellers.
- Deep Yellow Limited (ASX: DYL) has 10.4% of its shares held short, which is up week on week. It is yet another uranium stock that short sellers have been targeting this year.
- Liontown Resources Ltd (ASX: LTR) has 9.5% of its shares held short, which is up slightly week on week. This lithium miner recently adjusted its guidance to reflect weak commodity prices.
- Adriatic Metals (ASX: ADT) has short interest of 8.9%, which is up slightly week on week. Short sellers may be betting on the silver miner cutting its FY 2025 guidance for the Vares Silver Project in Bosnia and Herzegovina.
