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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 with short interest of 23.6%. This is down week on week again. Short sellers don't appear to believe that uranium will get its bull market as many predict.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease week on week again to 15.5%. It is another uranium miner that short sellers have been targeting.
- IDP Education Ltd (ASX: IEL) has 13.1% of its shares held short, which is up week on week. This student placement and language testing company has been under significant pressure in the last 12 months month due to major student visa changes.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13.1%, which is down since last week. This mining and mining services company's precarious balance sheet and weak commodity prices have weighed heavily on its shares over the past 12 months.
- Deep Yellow Limited (ASX: DYL) has 12.3% of its shares held short, which is down slightly week on week again. It is yet another uranium stock that short sellers have been targeting.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise slightly to 11.6%. This lithium miner's shares have been hammered over the past 12 months amid sustained weakness in lithium prices.
- Liontown Resources Ltd (ASX: LTR) has short interest of 11.3%, which is down from last week. Falling lithium spot prices due to increased supply from China and Africa has weighed heavily on sentiment.
- Cettire Ltd (ASX: CTT) is back in the top ten with short interest of 10.7%. Short sellers appear to believe this online luxury products retailer will struggle with changes to de minimis tax rules in the US.
- Polynovo Ltd (ASX: PNV) has 10.7% of its shares held short, which is down week on week. This medical device company has fallen short of expectations with its performance this year.
- Karoon Energy Ltd (ASX: KAR) has entered the top 10 with short interest of 10.2%. This may be due to concerns over oil and gas demand.
