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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:
- Boss Energy Ltd (ASX: BOE) continues its run as the most shorted ASX share after its short interest rose again to 18.3%. Short sellers appear to be betting on this uranium producer's upcoming update revealing costs significantly ahead of expectations.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest remain flat at 15.9%. This uranium miner recently downgraded its production guidance and withdrew its sales guidance.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest ease to 13.9%. Short sellers appear to believe that lithium prices won't be improving materially in the near term.
- Domino's Pizza Enterprises Ltd (ASX: DMP) has 13.2% of its shares held short, which is up week on week again. Short sellers seem to be expecting this pizza chain operator's turnaround to take longer than expected.
- Syrah Resources Ltd (ASX: SYR) has short interest of 13.2%, which is up since last week. This graphite miner recently declared a force majeure at its Balama operation in Mozambique. Though, offsetting some of this is news that it has just received a major funding boost in the United States.
- Mineral Resources Ltd (ASX: MIN) has short interest of 12.7%, which is largely flat week on week. This mining and mining services company's shares have lost a third of their value over the last six months.
- IDP Education Ltd (ASX: IEL) has 12.5% of its shares held short, which is up slightly week on week. Short sellers are targeting this student placement and language testing company due to unfavourable trading conditions caused by student visa changes.
- Megaport Ltd (ASX: MP1) has short interest of 10.6%, which is up week on week again. Short sellers may believe that Megaport will fall short of its guidance in FY 2025.
- Deep Yellow Limited (ASX: DYL) has 10.6% of its shares held short, which is flat week on week. This is another uranium stock that short sellers are targeting. This may be on the belief that uranium prices won't be as strong as the market is forecasting in the coming years.
- Liontown Resources Ltd (ASX: LTR) is back in the top ten with short interest of 10.1%. This may be because of concerns over the outlook for lithium prices.
