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 long run as the most shorted ASX share after its short interest remained flat at 25.7%. Short sellers appear to believe the investors are wrong to be bullish on the uranium market.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise week on week to 16.9%. It is another uranium share that short sellers are targeting. Though, they will have been disappointed to see its shares surge 24% higher last week after a stronger than expected quarterly update.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13.3%, which is flat since last week. This has been driven by concerns about this mining and mining services company's balance sheet and weak commodity prices.
- Deep Yellow Limited (ASX: DYL) has 13% of its shares held short, which is down slightly week on week. Deep Yellow is yet another uranium stock that is being targeted by short sellers. They appear doubtful that uranium prices will improve materially in the near term.
- IDP Education Ltd (ASX: IEL) has 12.6% of its shares held short, which is down week on week again. This student placement and language testing company's shares have been hammered this year due to tough trading conditions caused by student visa changes.
- Liontown Resources Ltd (ASX: LTR) has seen its short interest increase again to 12.2%. Falling lithium spot prices have weighed heavily on sentiment.
- Pilbara Minerals Ltd (ASX: PLS) short interest of 12%, which is down slightly week on week again. Lithium spot prices have fallen significantly recently due to increased supply from China and Africa.
- Lotus Resources Ltd (ASX: LOT) has short interest of 11%, which is down week on week. This is yet another ASX uranium stock in the top ten.
- Lifestyle Communities Ltd (ASX: LIC) has 10.4% of its shares held short, which is down week on week again. This retirement communities company has underperformed expectations over the past 12 months.
- Polynovo Ltd (ASX: PNV) has 10.2% of its shares held short, which is flat week on week. This medical device company's growth has been below expectations this year.
