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 increased again to 24.4%. Short sellers appear to believe the market is being too bullish on the outlook for uranium prices.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease week on week again to 15.6%. Short sellers may have been locking in some gains after the uranium miner's shares sank following the temporary suspension of its operations and the removal of its guidance.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 12.5%, which is up slightly week on week. This seems to be an indication that short sellers are confident that lithium prices won't be rebounding meaningfully any time soon.
- IDP Education Ltd (ASX: IEL) has 12% of its shares held short, which is down week on week. Investors have been selling off this student placement and language testing company's shares over the past 12 months as it struggles with very tough trading conditions caused partly by student visa changes.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest increase week on week 11.9%. Short sellers seem to be betting against a successful turnaround for this pizza chain operator.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.7%, which is up since last week. This mining and mining services company has been battling weak commodity prices, operational challenges, and controversies relating to its founder. Its balance sheet is also looking precarious.
- Deep Yellow Limited (ASX: DYL) has 11.9% of its shares held short, which is down slightly week on week. It is another uranium producer that short sellers have been successfully targeting.
- Lifestyle Communities Ltd (ASX: LIC) has 10.1% of its shares held short, which is down slightly since last week. This retirement communities company has been struggling in recent times due partly to negative media coverage relating to onerous contract terms.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest remain flat at 10.1%. Weak lithium prices are likely to be behind this.
- Cettire Ltd (ASX: CTT) has short interest of 9.9%, which is down week on week again. Trading conditions in the luxury products market are tough at present, which doesn't bode well for this online retailer's performance in FY 2025.
