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 to 22.6%. Short sellers may believe that the market is too optimistic on the outlook for uranium prices.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest lift again week on week to 18%. It is another uranium miner that short sellers have in their crosshairs.
- IDP Education Ltd (ASX: IEL) has 12.6% of its shares held short, which is down slightly week on week. This student placement and language testing company is struggling with very tough trading conditions caused partly by student visa changes.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 12.2%, which is down slightly week on week again. Short sellers appear to be betting on the lithium miner struggling with weak battery materials prices for some time to come.
- Deep Yellow Limited (ASX: DYL) has 12.2% of its shares held short, which is up week on week again. This is a third uranium stock in the top ten that short sellers are going after.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.6%, which is up meaningfully since last week. Short sellers don't appear to believe the pain is over for struggling mining and mining services company.
- Syrah Resources Ltd (ASX: SYR) has short interest of 11.1%, which is down slightly since last week. It has been another tough 12 months for this graphite producer. It has been battling weak graphite prices and the declaration of a force majeure at its Balama operation in Africa.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest increase week on week 11%. This pizza chain operator has been struggling to turn around its fortunes and short sellers may believe its latest attempt won't be a success.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest lift again to 10.6%. This is another lithium miner that is battling very weak lithium prices. It released its half year results last week and posted a loss for the period.
- Cettire Ltd (ASX: CTT) has short interest of 10.5%, which is up week on week. There are concerns about the online luxury products seller's business model trading conditions in the market.
