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:
- Boss Energy Ltd (ASX: BOE) has become the most shorted ASX share after its short interest jumped to 17.1%. There are fears that this uranium producer will soon reveal costs that are significantly ahead of expectations.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest fall meaningfully week on week to 14.4%. Short sellers have been targeting the uranium miner after it downgraded its production guidance and withdrew its sales guidance.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest remain flat at 14%. Short sellers appear to believe that lithium prices will be remaining lower for longer.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest stay at 12.8%. Late last year this graphite miner declared a force majeure at its Balama operation in Mozambique. Weak battery materials prices have also weighed on sentiment.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.5%, which is flat week on week. This embattled mining and mining services company's shares were crushed last year and short sellers don't appear to believe the worst is over.
- IDP Education Ltd (ASX: IEL) has 12.2% of its shares held short, which is steady week on week. There are concerns that this student placement and language testing company will report a weaker than expected result in FY 2025 due to unfavourable trading conditions.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 12.2%, which is up slightly week on week again. Short sellers are betting against this pizza chain operator's turnaround in FY 2025.
- Deep Yellow Limited (ASX: DYL) has 10.9% of its shares held short, which is up week on week. It is another uranium stock that short sellers are going after. They may believe that uranium prices won't be as strong as some are forecasting.
- Karoon Energy Ltd (ASX: KAR) has short interest of 10.6%, which is up again since last week. This energy producer recently downgraded its production guidance due to issues at its Bauna operation.
- Megaport Ltd (ASX: MP1) is a new entry in the top ten with short interest of 9.9%. Weak guidance for FY 2025 set off alarm bells last year and short sellers are taking advantage.
