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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) retains its crown as the most shorted ASX share for yet another week. It currently has a short interest of 22%, which is up meaningfully week on week. Short sellers don't appear to believe that the lithium surplus is going to end any time soon.
- IDP Education Ltd (ASX: IEL) has 15.7% of its shares held short, which is up week on week. This student placement and language testing company's shares have come under significant pressure over the last 12 months. This has been driven by regulatory changes to student visas and the loss of its language testing monopoly in Canada.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13.4%, which is down slightly week on week. This graphite miner is battling weak graphite prices and has had to raise funds multiple times to shore up its balance sheet.
- Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase week on week to 11.5%. This may be due to concerns over revenue margin headwinds and consumer spending.
- Liontown Resources Ltd (ASX: LTR) has 10.6% of its share held short, which is up week on week. The Kathleen Valley Lithium Project owner has been targeted by short sellers due to weak lithium prices.
- Sayona Mining Ltd (ASX: SYA) has a short interest of 8.4%, which is up strongly week on week. Last week, this lithium miner released its quarterly update and revealed that it was selling its lithium for $500 per tonne less than it cost to produce. This hit its cash balance hard.
- Core Lithium Ltd (ASX: CXO) has a short interest of 8.3%, which is flat week on week. Core Lithium is yet another lithium miner that short sellers have successfully shorted over the last 12 months.
- Bank of Queensland Ltd (ASX: BOQ) has 7.7% of its shares held short, which is down slightly week on week. Short sellers may be targeting the regional bank due to concerns over its expense growth and potential structural margin compression.
- Weebit Nano Ltd (ASX: WBT) has 7.5% of its shares held short, which is up week on week again. This semiconductor company will be releasing its quarterly update this week. Short sellers appear to believe it will be another disappointing three months with next to no revenue.
- Strike Energy Ltd (ASX: STX) has entered the top ten with a short interest of 7.1%. This gas company's shares have fallen 55% over the past 12 months. Short sellers don't appear to believe the declines are over.
