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 long run as the most shorted ASX share with short interest of 18.1%. This is down week on week again. Short sellers are betting heavily against the uranium market.
- Paladin Energy Ltd (ASX: PDN) has seen its short interest ease slightly week on week to 15.3%. This is another uranium miner that is being targeted by short sellers.
- Mineral Resources Ltd (ASX: MIN) has short interest of 14.9%, which is up week on week. A precarious balance sheet and weak commodity prices are weighing on sentiment.
- Pilbara Minerals Ltd (ASX: PLS) has seen its short interest remain flat at 12.8%. Chinese spodumene prices recently dropped to multi-year lows, dragging lithium miners down with them.
- Liontown Resources Ltd (ASX: LTR) has short interest of 12.4%, which is down slightly week on week again. This high level of short interest is also being driven by weak lithium prices.
- Polynovo Ltd (ASX: PNV) has 10.7% of its shares held short, which is up slightly since last week. Short sellers don't appear to believe that this medical device company's shares deserve to trade on such high multiples.
- Cettire Ltd (ASX: CTT) has seen its short interest rise to 10.7%. Short sellers will have been smiling last week after a terrible update led to this online luxury products retailer's shares crashing over 40%.
- Deep Yellow Limited (ASX: DYL) has 10.5% of its shares held short, which is down week on week. It is another uranium miner that short sellers have been successfully targeting.
- Lifestyle Communities Ltd (ASX: LIC) has seen its short interest rise slightly to 10.2%. This may be due to concerns that negative media coverage is causing headwinds for the retirement living developer.
- IDP Education Ltd (ASX: IEL) has 10.2% of its shares held short, which is down week on week. Some short sellers may have been closing positions after its shares crashed over 50% a week earlier following a very disappointing update.
The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo. The Motley Fool Australia has recommended PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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