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 24.8%. Short sellers are betting heavily against the uranium market.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise slightly week on week to 15.7%. Short sellers have won big from this one after the uranium miner temporarily suspended its operations and removed its guidance.
- Deep Yellow Limited (ASX: DYL) has 13.1% of its shares held short, which is up week on week. It is a third uranium producer that short sellers have been successfully targeting in the top ten.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 13%, which is up week on week. Short sellers seem to believe that lithium prices are staying lower for longer. This lithium miner's shares are down 65% since this time last year.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.6%, which is up since last week. This mining and mining services company has been under the pump recently battling weak commodity prices, operational challenges, and controversies relating to its founder.
- IDP Education Ltd (ASX: IEL) has 12.3% of its shares held short, which is up week on week. This student placement and language testing company's shares have crashed over the past 12 months due to very tough trading conditions.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest remain steady at 11.9%. Short sellers don't appear confident that this pizza chain operator will turn around its poor performance.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest increase to 10.5%. This is likely due to weak lithium prices and concerns they could stay weak for some time.
- Lifestyle Communities Ltd (ASX: LIC) has 10.2% of its shares held short, which is up slightly since last week. This retirement communities company has been struggling due to negative media coverage.
- Cettire Ltd (ASX: CTT) has short interest of 9.8%, which is down slightly week on week. This online luxury products retailer's shares crashed last week after trade tariffs were announced. It looks set to be significantly impacted.
