Retail traders in the US can't sell foreign penny stocks short...

Retail traders in the US can't sell foreign penny stocks short -- I think that option is limited to brokers who make a market in them. (Someone correct me if I'm wrong.) So I find it interesting how the short interest in AZLAF has grown over the past few months. One explanation is that American investors have been paying way too much for it, compared to the ASX price. Sometimes it will trade for 1.5 US cents here, at the same time as 1.5 AUD cents in Sydney. I suppose if you expect it to increase tenfold and reach the same market cap as Thacker Pass's LAC, it doesn't make much difference if you pay too much. One strategy in play here might be to sell short in the US and hold long in Australia.

While the latest ASX short interest is about 3 million shares, the US is at 1 million. That's about the same as it was last June, but the "days to cover" has increased dramatically because the shares just don't trade here much anymore.