Image source: Getty Images
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:
- Paladin Energy Ltd (ASX: PDN) has become the most shorted ASX share after its short interest rose to 16%. Short sellers appear to believe that this uranium producer will disappoint with its ramp up.
- Boss Energy Ltd (ASX: BOE) has seen its short interest fall week on week to 15.1%. Short sellers appear to have been closing positions following a recent rally driven by a strong operational performance.
- Mineral Resources Ltd (ASX: MIN) has short interest of 13.8%, which is down slightly week on week. There are concerns about weak commodity prices and this mining and mining services company's precarious balance sheet.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest remain flat at 13.2%. Increasing supply from Africa is expected to weigh on lithium prices for some time to come.
- Liontown Resources Ltd (ASX: LTR) has short interest of 12.6%, which is down week on week again. It is another lithium miner that is battling low lithium prices.
- IDP Education Ltd (ASX: IEL) has 11.5% of its shares held short, which is up strongly week on week. Short sellers are loading up on this language testing and student placement company's shares even after it crashed deep into the red this year due to a very poor update.
- Silex Systems Ltd (ASX: SLX) has seen its short interest soften to 11.2%. Short sellers may have doubts that the uranium enrichment technology company will achieve its pivotal TRL-6 demonstration by the end of 2025 as planned.
- Polynovo Ltd (ASX: PNV) has 10.7% of its shares held short, which is up week on week. This medical device company's growth this year has been below analyst expectations.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest ease to 10%. This morning, this retirement communities company requested a trading halt ahead of the release of an update on proceedings currently before the Victorian Civil and Administrative Tribunal.
- James Hardie Industries plc (ASX: JHX) has entered the top ten with short interest of 9.6%. Short sellers will have been disappointed to see the building products company's shares rally last week after it completed a major acquisition.
