Yes... well maybe... the market is an unpredictable beast to understand, let alone predict.
I bet most of the market did not see CATL shutting down Jiangxi lepidolite operation would cause such a repricing of Lithium Spod even though logic suggested those operations should have been shutdown long ago as it waa bleeding a truckload of cash. As such, there were so much undue pessimism, as demonstrated by the net short in the likes of PLS, IGO etc. Their sudden turnaround is more a function of sentiment than underlying value. PLS isn't worth nearly 50% more as a business than it was 3 weeks ago. Same with STX. Just because something is unloved today and all is doom and gloom doesn't mean it will stay there forever, esp if the business isndoing well... and that's what seem to be the prevailing sentiment around here.... that STX will be trashed forever.
There may well be lots of selling by disgruntled/disillusioned long term shareholders, but if and when the shorts cover even some of the current c.250mn open shorts, whatever selling done by retail will be soaked up without even a ripple in the market depth.
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