Why are Shorts so high and increasing, page-13

Names little,

You seem to be assuming that shorts are in Galaxy to make money. They are not. If they were, they would actually already have covered. As you can see on the shortman chart, they would be sitting on a very nice profit at this stage. If they're not exiting, it is because they have no interest in taking these profits. It is pretty obvious, a little bit of common sense is all that is needed to see this.

Likewise, they don't care how much money they need to maintain their short positions. The $$ they sink into it, day in, day out, is irrelevant to them.

Their agenda has nothing to do with immediate profit.
So what is it? Why is Galaxy in particular and the whole lithium sector (at least in Australia) shorted so heavily.
Probably one or a combination of those:

1) Oil & Gas. They have a lot (we are talking hundreds of billions of dollars here) to lose and although they probably know they can't destroy the industry, they can certainly slow it down.

2) Lithium majors. They have recently (in the past couple of years) seen a lot of juniors coming online and eating their market shares, which they want back. SQM actually went as far as publicly admitting that they were fighting market share erosion.

3) China. They want to dominate the industry and the "dump and take control" tactic is one of their favourite ones, as we have recently seen with BAL and even PLS to some extent.

4) abs, who absolutely wants to be right, for a change.


I am sure there are many people here who can think of many other reasons, these are the ones that make the more sense for me.


Now, why is Galaxy more shorted than the other ones?
Because it is the best one. It is in a very strong position, both operationally (great product with low cost of production at MCt) and of course financially (no debt, mountain of cash). It is the bigger threat to whoever is/are shorting. It deserves a special attention just like the best player in a soccer team who has 2 or 3 opponents tackling him constantly to stop him from scoring a goal.