AKE 0.00% $9.83 allkem limited

No.1 shorted ASX stock...., page-80

  1. 1,340 Posts.
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    I don't get how much profit shorters really expect to make after our fall from >$4.

    The company is cash flow positive, with increasing (albiet slow) production. The company is close to trading at a discount. Plus with expansion plans in the works there is definitely positive prospects long-term.

    My guess is they are betting on:
    - possible cap raise (which the company has vehemently ruled out)
    - the production process is inherently flawed, with nameplate perpetually delayed

    Otherwise I see very little room for shorters to profit. I would expect a down-trodden company with zero prospects and dodgy management to be the #1 shorted stock, not a new producer of a material that is in a sellers market.

    Though some may it is financial irrational to take a contrary view to the market, I say: "Fortune favours the bold". GLTA
 
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