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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) continues to be the most shorted ASX share with short interest of 21.7%. This is down week on week once again. Unfortunately for short sellers, uranium stocks jumped last week after US President Donald Trump signed an order to boost the industry.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise week on week to 15.6%. It is another uranium miner that jumped last week on the Trump news.
- Mineral Resources Ltd (ASX: MIN) has short interest of 14.3%, which is up since last week. Weak commodity prices and a precarious balance sheet appear to be behind this.
- Liontown Resources Ltd (ASX: LTR) has short interest of 12.8%, which is up from last week. Short sellers have been loading up on Liontown's shares after lithium spot prices tumbled.
- IDP Education Ltd (ASX: IEL) has 12.7% of its shares held short, which is down week on week. This student placement and language testing company is struggling with very tough trading conditions.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise again to 12.3%. This lithium miner's shares are also being targeted due to weak battery material prices.
- Deep Yellow Limited (ASX: DYL) has 11.6% of its shares held short, which is down week on week again. This is another another uranium stock that short sellers have been targeting.
- Polynovo Ltd (ASX: PNV) has 11% of its shares held short, which is up week on week. The market has been disappointed with this medical device company's growth this year.
- Cettire Ltd (ASX: CTT) has short interest of 10.7%, which is flat week on week. There are concerns that this online luxury products retailer could struggle with changes to de minimis tax rules in the US.
- Karoon Energy Ltd (ASX: KAR) has short interest of 10.1%. This seems to be due to concerns over oil and gas demand.
