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 by some distance after its short interest increased to 23.3%. Short sellers may have ramp up concerns and feel the market is too optimistic on the outlook for nuclear power and uranium prices.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease week on week to 17.6%. This uranium miner sank late last week after revealing that heavy rain had suspended operations.
- IDP Education Ltd (ASX: IEL) has 12.7% of its shares held short, which is up slightly week on week. This student placement and language testing company is battling very tough trading conditions caused partly by student visa changes.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 12%, which is down slightly week on week once again. Short sellers don't appear to believe the worst is over for lithium miners.
- Deep Yellow Limited (ASX: DYL) has 12% of its shares held short, which is down slightly week on week. Deep Yellow is another uranium producer that short sellers have in their sights.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest increase week on week 11.5%. It seems that short sellers don't believe this pizza chain operator's turnaround will be smooth sailing.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.2%, which is down since last week. This struggling mining and mining services company's shares are down by 67% over the past 12 months.
- Lifestyle Communities Ltd (ASX: LIC) has entered the top ten with 10.2% of its shares held short. This retirement communities company has been struggling in recent times due partly to negative media coverage. Though, there has been speculation that it could be a takeover target.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest fall to 10.1%. This lithium miner posted a loss during the first half due to weak lithium prices.
- Cettire Ltd (ASX: CTT) has short interest of 10%, which is down week on week. Trading conditions in the luxury products market are tough at present.
