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) remains the most shorted ASX share after its short interest rose again to 17.6%. Short sellers are betting heavily on this uranium producer revealing costs that are significantly ahead of expectations.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rebound week on week to 15.9%. This uranium miner's shares have come under significant pressure since downgrading its production guidance and withdrawing its sales guidance.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise to 14.2%. Short sellers are betting on lithium prices remaining lower for longer and weighing on this miner's profits.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest rise slightly to 12.9%. At the end of last year, this graphite miner declared a force majeure at its Balama operation in Mozambique. Weak battery materials prices have also weighed on sentiment and its balance sheet.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.7%, which is up week on week. This mining and mining services company's shares have come under significant pressure due to lithium price weakness and drama in the C-suite.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 12.5%, which is up week on week again. Short sellers seem to believe that this pizza chain operator's turnaround will take longer than expected.
- IDP Education Ltd (ASX: IEL) has 12.4% of its shares held short, which is up week on week. This student placement and language testing company is expected to post a large decline in profits in FY 2025 due to unfavourable trading conditions caused by student visa changes.
- Deep Yellow Limited (ASX: DYL) has 10.6% of its shares held short, which is down week on week. This is another uranium stock that short sellers are targeting.
- Karoon Energy Ltd (ASX: KAR) has short interest of 10.6%, which is flat since last week. This energy producer recently downgraded its production guidance because of issues at its Bauna operation.
- Megaport Ltd (ASX: MP1) has short interest of 10.2%, which is up week on week. Short sellers appear to believe that Megaport will fall short of its weak guidance for FY 2025.
