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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:
- Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share after its short interest rose again to 18.9%. Later this week, this uranium producer will be releasing its quarterly update. Short sellers appear to be betting on its costs being significantly ahead of expectations.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease to 15.4%. This uranium miner's shares rallied last week after delivering a better than feared update. Paladin Energy also revealed that its water problems have now been resolved.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 13.5%, which is down slightly week on week. This high level of short interest appears to be due to concerns that lithium supply from Africa and China will surge and keep prices lower for longer.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has 13.4% of its shares held short, which is up week on week again. Short sellers seem to think that this pizza chain operator's half year results will disappoint next month.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13.1%, which is down slightly since last week. This graphite miner's shares came under pressure recently after declaring a force majeure at its Balama operation in Mozambique. They are down 46% over the past 12 months.
- IDP Education Ltd (ASX: IEL) has 12.8% of its shares held short, which is up week on week again. This student placement and language testing company is struggling in FY 2025 due to unfavourable trading conditions caused by student visa changes.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.5%, which is down slightly since last week. Weak lithium prices and the exit of its founder/CEO due to misconduct have weighed on its shares.
- Megaport Ltd (ASX: MP1) has short interest of 10.8%, which is up week on week again. Short sellers appear to believe that the network as a service company will fall short of expectations in FY 2025.
- Deep Yellow Limited (ASX: DYL) has 10.6% of its shares held short. This is flat week on week once again. Short sellers may believe that uranium prices won't be as strong as the market is forecasting in the coming years.
- Liontown Resources Ltd (ASX: LTR) has short interest of 10%, which is down slightly since last week. This may also be due to concerns over the outlook for lithium prices.
