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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 21.8%. This is down week on week. This uranium producer disappointed the market recently with guidance for FY 2026 that fell well short of expectations.
- Paladin Energy Ltd (ASX: PDN) is another uranium producer that short sellers are targeting. It has short interest of 18.3%, which is down slightly week on week. There may be concerns over the ramp up of its Langer Heinrich Mine.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest remain rise to 15.5%. Short sellers don't appear to believe that lithium prices will be rising meaningfully in the near term.
- IDP Education Ltd (ASX: IEL) has 14.2% of its shares held short, which is up week on week again. Short sellers will have been disappointed to see this language testing and student placement company's shares rocket last week after it released its results.
- Polynovo Ltd (ASX: PNV) has 12% of its shares held short, which is up week on week once again. Valuation concerns could be the reason why short sellers are targeting this medical device company's shares.
- Mineral Resources Ltd (ASX: MIN) has short interest of 11.8%, which is up week on week. This mining and mining services company has a precarious balance sheet and is exposed to weak commodity prices.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest remain flat at 11.5%. This retirement living company has been battling tough trading conditions. These have been caused by negative media coverage. It also lost a major court battle recently.
- Corporate Travel Management Ltd (ASX: CTD) has short interest of 9.8%, which is flat week on week. This corporate travel specialist's shares have been suspended for a week after becoming "aware that a material correction will need to be made to certain aspects of the Company's previous financial statements."
- PWR Holdings Ltd (ASX: PWH) has entered the top ten with short interest of 9.5%. This motorsport products company's shares tumbled last week after disappointing with its full year results. Another transition year is expected in FY 2026, which also appears to have put pressure on its shares.
- Silex Systems Ltd (ASX: SLX) has seen its short interest rise to 9%. There may be doubts over this uranium enrichment technology company's pivotal TRL-6 demonstration later this year.
