General Discussion Topics, page-90249

So your argument here (which seems to constitute financial advice) is that they’re ignorantly shorting the stock just to profit from short-term fears, and they’re secretly and outside of ASIC’s purview, able to organise and pay random internet accounts to downramp the stock so they can make a quick buck. Right. What about the other, far more simple alternative?

Professional money is shorting this stock because they look at the current valuation, then run the numbers on the upcoming cashflows from NAL (where most of the margin upside is going to PLL due to the offtake), and they realise that retail froth has pushed the stock to a dizzying valuation - so they short it. They don’t hate the stock, nor are they evil manipulators, they just think it’s overvalued, so they hold a short position. Just as most of you guys on here think it’s undervalued, so you hold a long position. Just as Canaccord ran the numbers recently, and dropped their PT to $0.20.

In fact, those shorting are probably long one of the more established lithium names (AKE, IGO, PLS) which we often see fundies tipping, and may be using a short position on the frothier names like LKE, SYA or VUL (names we almost never see fund managers tipping) to hedge their long position.

It really is that simple, IMV.