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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:
- Core Lithium Ltd (ASX: CXO) continues to be the most shorted ASX share despite its short interest easing to 10.8%. This lithium miner's shares have been hammered this year, much to the delight of short sellers. This has been driven by valuation concerns and production guidance that fell well short of expectations.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase a touch again to 10.2%. Short sellers continue to target the travel agent despite its recent guidance upgrade.
- IDP Education Ltd (ASX: IEL) has 9.4% of its shares held short, which is down week on week again. There are fears that this language testing and student placement company could underperform expectations after losing its monopoly in Canada.
- Syrah Resources Ltd (ASX: SYR) has short interest of 8.3%, which is up week on week. Syrah recently revealed that weak graphite prices have forced it to put its Balama operations on care and maintenance.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8.1%, which is up week on week. Short sellers appear to believe that the near term could be tough for the retailer due to the cost of living crisis.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 7.9%, which is up week on week again. A recent decline in lithium prices has put pressure on its shares.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest rise to 7.6%. Short sellers are going after this meme stock due to its crazy valuation and lack of sales.
- Select Harvests Ltd (ASX: SHV) has 7.5% of its shares held short, which is down week on week. This almond producer recently announced a sizeable $96 million loss.
- Elders Ltd (ASX: ELD) has entered the top ten with 7.3% of its shares held short. Tough trading conditions in the agricultural sector appear to be behind this.
- Lake Resources N.L. (ASX: LKE) has short interest of 7.1%, which is flat since last week. Short sellers don't appear to believe this lithium developer's shares have bottomed despite being crushed over the last 12 months.
