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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) continues to be the most shorted ASX share with short interest of 19.2%. This is down slightly week on week. Short sellers continue to hold onto this uranium producer's shares despite its better than expected quarterly update.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise to 16%. This uranium miner is one of a number of uranium shares that short sellers are targeting.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13.2%, which is flat since last week. This graphite miner recently had to declare a force majeure at its Balama operation in Africa.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 12.8%, which is up week on week. This morning, this lithium miner released a profit update and revealed that it expects to post a loss for the first half of FY 2025.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has 12.8% of its shares held short, which is down week on week again. Short sellers were caught up in a short squeeze last week after this pizza chain operator's shares rallied on good news.
- IDP Education Ltd (ASX: IEL) has 12.7% of its shares held short, which is up week on week. Short sellers are betting on this student placement and language testing company struggling this year due to student visa changes.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.5%, which is up slightly since last week. Concerns over its high debt load and the exit of its founder/CEO due to misconduct have weighed on its shares.
- Star Entertainment Group Ltd (ASX: SGR) is a new entry in the top ten with short interest of 11.1%. There are concerns that this casino operator could go bust in the near future.
- Deep Yellow Limited (ASX: DYL) has 10.8% of its shares held short, which is down week on week. It appears that short sellers believe the market is too bullish on uranium prices.
- Liontown Resources Ltd (ASX: LTR) has short interest of 10.5%, which is up slightly since last week. Concerns over the outlook for lithium prices in the coming years may be behind this.
