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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:
- Paladin Energy Ltd (ASX: PDN) will end the year has the most shorted ASX share after its short interest rose again week on week to 17.6%. Short sellers have been increasing their positions in the uranium miner after it downgraded its production guidance and scrapped its sales guidance.
- Boss Energy Ltd (ASX: BOE) has 16.8% of its share held short, which is up again since last week. There are fears that this uranium producer will soon reveal costs that are significantly ahead of expectations.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rise again to 14%. Short sellers seem to be betting on lithium prices remaining lower for longer.
- Syrah Resources Ltd (ASX: SYR) has seen its short interest increase slightly to 12.8%. This graphite miner recently declared a force majeure at its Balama operation in Mozambique.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.5%, which is up week on week. Short sellers continue to load up on this embattled mining and mining services company's shares. They don't appear to believe that the worst is behind it yet.
- IDP Education Ltd (ASX: IEL) has 12.2% of its shares held short, which is down slightly week on week again. This student placement and language testing company looks set to post a sizeable decline in profits in FY 2025 due to unfavourable trading conditions.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 12.1%, which is up week on week again. Short sellers seem to think that this pizza chain operator's turnaround isn't going as well as hoped.
- Deep Yellow Limited (ASX: DYL) has 10.7% of its shares held short, which is down week on week. This is another uranium stock that short sellers are betting heavily against.
- Karoon Energy Ltd (ASX: KAR) has short interest of 10.4%, which is up since last week. This energy producer's shares came under pressure this month after downgraded its production guidance due to issues at its Bauna operation.
- Liontown Resources Ltd (ASX: LTR) has 9.5% of its shares held short, which is up week on week. This lithium miner recently downgraded its production guidance in response to weak battery material prices.
