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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:
- Pilbara Minerals Ltd (ASX: PLS) continues its long run as the most shorted ASX share despite its short interest easing to 19.2%. Short sellers appear to believe that lithium prices are going to stay lower for longer.
- Syrah Resources Ltd (ASX: SYR) has short interest of 16.9%, which is down week on week. This graphite producer has been struggling with weak battery materials prices. Short sellers don't seem to believe this will improve any time soon.
- Core Lithium Ltd (ASX: CXO) has short interest of 13%, which is up slightly week on week. This lithium miner recently announced plans to restrict production to reduce costs.
- Sayona Mining Ltd (ASX: SYA) has 11.4% of its shares held short, which is down slightly since last week. This lithium miner is currently paying more to mine its lithium than it receives from sales.
- Deep Yellow Limited (ASX: DYL) has seen its short interest rise to 10%. There are doubts about the bullish outlook of uranium prices following a recent update from a large miner.
- IDP Education Ltd (ASX: IEL) has 9.9% of its shares held short, which is flat week on week. This is likely to be down to unfavourable regulatory changes and the loss of its testing monopoly in Canada.
- Genesis Minerals Ltd (ASX: GMD) has seen its short interest ease to 9.1%. This may be due to concerns over integration risks from its recent acquisition spree.
- Weebit Nano Ltd (ASX: WBT) has short interest of 8.6%, which is down since last week. Short sellers don't appear confident this semiconductor company will ever live up to its market capitalisation of almost $750 million.
- Chalice Mining Ltd (ASX: CHN) has short interest of 8.4%, which is down week on week. This mineral exploration company's shares have crashed deep into the red over the last 12 months following news that its production is still years away.
- Flight Centre Travel Group Ltd (ASX: FLT) has 8.1% of its shares held short, which is down since last week. There are concerns over this travel agent's growth and revenue margin assumptions.
