2024 Charts, page-757

Yeah it's a bit odd, isn't it? But I think that shows why looking at short positions isn't that insightful. Take the LKE example—it's proof that short positions don't necessarily indicate a company's health. Then there's CXO and SYA, both with around 7% short interest, and they're disasters waiting to unfold. On the flip side, GLN has less than 1% shorts, yet it's been facing significant challenges lately.

PLS, with its high percentage of shorts, suggests confidence in underlying issues, but I fail to see major problems with it. With $1.8b in cash, substantial resources, and minimal jurisdictional risk, the only concerns seem to be macro conditions and their reliance on Chinese offtakes. While this poses a risk, a 22% short interest feels excessive, likely driven by high liquidity and negative sentiment towards lithium overall. However, with its solid financials and expansion plans, shorting PLS seems like a bold move.

Certainly one to watch.