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:
- Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted share after its short interest remained flat at 10.4%. Short sellers appear to have concerns over revenue margin and consumer spending headwinds.
- Pilbara Minerals Ltd (ASX: PLS) has short interest of 9.7%, which is up sharply week on week. Short sellers appear to be betting that lithium prices continue to sink.
- Syrah Resources Ltd (ASX: SYR) has short interest of 9.4%, which is up again. Weak graphite prices have led to its Balama operation being put on care and maintenance.
- Elders Ltd (ASX: ELD) has seen its short interest increase to 8.9%. Traders don't appear to believe that trading conditions will improve for this agribusiness company in the near term.
- Appen Ltd (ASX: APX) has entered the top ten with short interest of 8.7%. This artificial intelligence data services company's shares have been hammered due to its deteriorating performance. The AI boom also seems to be skipping Appen.
- Lake Resources N.L. (ASX: LKE) has short interest of 8.6%, which is flat week on week. There are concerns over the viability of this lithium developer's Kachi project.
- JB Hi-Fi Limited (ASX: JBH) has short interest of 8.4%, which is down week on week. Short sellers appear to believe that the weak consumer spending outlook means this retailer could have a tough 12 months.
- Brainchip Holdings Ltd (ASX: BRN) has seen its short interest rise again to 8.2%. Last week, this embattled semiconductor company revealed less first-half revenue than a café and a huge loss.
- IDP Education Ltd (ASX: IEL) has 8.1% of its shares held short, which is down sharply week on week. Short sellers seem to have been closing their positions since the language testing and student placement company released its results.
- 29Metals Ltd (ASX: 29M) has entered the top ten with short interest of 7.5%. This copper miner's recent quarterly update revealed the doubling of its C1 costs quarter on quarter.
