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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 very long as the most shorted ASX share with short interest of 21.4%. This is down slightly week on week. This lithium giant will be releasing its FY 2024 results today and is expected to post a sharp decline in profits.
- IDP Education Ltd (ASX: IEL) has 13.2% of its shares held short, which is up since last week. Short sellers have been targeting this language testing and student placement company's shares due to a crackdown on student visas in key markets.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest increase again to 12.2%. Short sellers have been increasing their positions since the graphite miner released another weak quarterly update.
- Liontown Resources Ltd (ASX: LTR) has 12% of its share held short, which is up slightly week on week once again. Short sellers continue to target this lithium miner, which has just commenced production at the Kathleen Valley Lithium Project. They appear confident that lithium prices are staying lower for longer.
- Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest remain flat week on week at 11.3%. Rare earths prices have fallen sharply this year and look set to weigh heavily on Lynas' profitability.
- Strike Energy Ltd (ASX: STX) has short interest of 10.8%, which is up week on week again. This may be due to the disappointing performance at Walyering and some underwhelming exploration updates.
- Chalice Mining Ltd (ASX: CHN) has short interest of 10.6%, which is down week on week for once. This mineral exploration company is still a good number of years away from commencing production and generating revenue.
- Cettire Ltd (ASX: CTT) has 10.2% of its shares held short, which is down slightly week on week. This luxury products retailer's shares have lost 50% of their value in 2024. Short sellers don't appear to believe the declines are over.
- Sayona Mining Ltd (ASX: SYA) has short interest of 9.7%, which is down since last week. This lithium miner has been an easy target for short sellers. It continues to burn through its cash reserves by selling lithium for less than its production cost.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest rise week on week to 9.6%. Short sellers have been loading up on uranium stocks in response to recent updates in the industry that point to prices being softer than forecast.
