General Discussion Topics, page-90850

The shorts are either extremely knowledgeable or extremely stupid.

SYA is top 5 shorted stock on ASX.

1) for being in lithium space when the spot price is as high as it is and
2) for being close to production

The bet is 1) lithium prices start to drop off before an offtake announcement is put to market = some people seeing a therefore lower NPV when assessing a company thus deeming it valued at a lower amount (SP drop based off overall market sentiment)

2) If there is as simple as 1 mess up in the ramp up to production it will impact expected cashflow and EPS again lowering value per share.

Its an educated calculation as I dont think I would see an average person such as myself conducting short positions. You definitely need to be in the know and any day traders will definitely, more than myself, question a bit more than me, why so many are held short.

PLS had about 10% on short in 2018. Now its no where near that figure.

Just because the share price has increased in line with the short positions increasing, doesnt necessarily mean this is a fake run up. The shorted shares may not have hit the market yet and they could be in the red as soon as they decide to sell on market at a higher price than what they loaned them for.

I am happy knowing that SYA has a lot of eyes on in, regardless of shorts or not. End of the day short positions are held by large investment banks/hedge funds that see an opportunity to make money and take it.

When we get to production and start seeing the cash rolling in, hopefully they spend it frugally and we see some solid growth on quality assets..