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) continues its run as the most shorted ASX share after its short interest rose again to 19.6%. Unfortunately for short sellers, this uranium producer's shares stormed higher last week after releasing a better than expected quarterly update.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease again to 15.1%. This uranium miner's shares also recently rallied after delivering a better than feared update. Paladin Energy also revealed that its water problems have now been resolved.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has 13.3% of its shares held short, which is down slightly week on week. Short sellers appear to be betting on this pizza chain operator disappointing the market with its half year results this month.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13.2%, which is up slightly since last week. This graphite miner is having problems in Mozambique. So much so, it had to declare a force majeure at its Balama operation.
- IDP Education Ltd (ASX: IEL) has 12.6% of its shares held short, which is down week on week. This student placement and language testing company is battling tough trading conditions caused by student visa changes.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 12.5%, which is down strongly week on week. Short sellers may believe the worst is over for this lithium miner and are closing positions in an orderly manner.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.4%, which is down slightly since last week. A high debt load and the exit of its founder/CEO due to misconduct have weighed on its shares.
- Deep Yellow Limited (ASX: DYL) has 11% of its shares held short, which is up week on week. It seems that short sellers believe the market is too bullish on uranium prices.
- Megaport Ltd (ASX: MP1) has short interest of 10.5%, which is down week on week. This may be due to concerns that the network as a service company will fall short of expectations in FY 2025.
- Liontown Resources Ltd (ASX: LTR) has short interest of 10.2%, which is up slightly since last week. This could be due to concerns over the outlook for lithium prices in the coming years.
