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:
- Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share with 20.6% of its shares held short. This appears to be due to concerns over falling lithium prices.
- Syrah Resources Ltd (ASX: SYR) has a short interest of 14.5%, which is down week on week. Weak graphite demand has been weighing on its Balama operations, which are operating for approximately one month per quarter at present.
- Core Lithium Ltd (ASX: CXO) has a short interest of 9.9%, which is down week on week. Weak lithium prices and underwhelming production guidance have been putting pressure on its shares this year.
- IDP Education Ltd (ASX: IEL) has 9.5% of its shares held short, which is up week on week. Student visa changes and the loss of its monopoly in Canada have weighed on this student placement and language testing company's shares.
- Sayona Mining Ltd (ASX: SYA) has 9.3% of its shares held short, which is down week on week. This is yet another lithium miner that short sellers have been targeting.
- Flight Centre Travel Group Ltd (ASX: FLT) has 8.6% of its shares held short, which is down week on week again. Short sellers appear to believe the market is expecting too much from Flight Centre's revenue margins.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest fall to 8.3%. This may be due to integration risks from recent acquisitions by this gold miner.
- Bank of Queensland Ltd (ASX: BOQ) has a short interest of 8.1%, which is down slightly since last week. Traders may be betting against this regional bank due to the intense competition in Australian mortgage loans.
- Paladin Energy Ltd (ASX: PDN) has entered the top ten with a short interest of 7.1%. Short sellers seem to believe that the market is too bullish on uranium.
- Peninsula Energy Ltd (ASX: PEN) is also a new entry in the top ten with a short interest of 6.4%. This is another uranium share being targeted by short sellers.
