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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 its long run as the most shorted ASX share despite its short interest falling week on week to 16.5%. Short sellers continue to target the uranium industry.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease to 15.9%. This is another uranium producer that short sellers have been targeting. They may believe the predicted uranium bull market won't materialise.
- Mineral Resources Ltd (ASX: MIN) has short interest of 14%, which is down week on week. This mining and mining services company's shares have fallen heavily this year. Short sellers appear to believe there's more to come due to weak commodity prices and its precarious balance sheet.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest fall slightly to 13.2%. Short sellers will have been disappointed to see this lithium miner's shares rocket 14% last week on optimism that its shares have now bottomed.
- Liontown Resources Ltd (ASX: LTR) has short interest of 12.7%, which is up week on week again. Short sellers have also been targeting this lithium miner and with great success. Its shares are down 20% since this time last year.
- Silex Systems Ltd (ASX: SLX) has seen its short interest rise to 11.4%. It is a uranium enrichment technology company. Short sellers may have doubts that Silex will achieve its pivotal TRL-6 demonstration by the end of 2025 as targeted.
- Polynovo Ltd (ASX: PNV) has 10.6% of its shares held short, which is flat week on week. This appears to have been driven by softer than expected growth from the medical device company this year.
- IDP Education Ltd (ASX: IEL) has 10.2% of its shares held short, which is flat week on week again. Short sellers aren't closing positions despite this language testing and student placement company's shares crashing deep into the red this year due to a very poor update.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest ease to 10.2%. There may be concerns that this retirement living developer will continue to underperform expectations due partly to brand damage from negative media coverage.
- Corporate Travel Management Ltd (ASX: CTD) is a new entry in the top ten with short interest of 9.6%. Short sellers appear to believe that corporate travel demand may be weaker than expected.
