LIONTOWN RESOURCES LIMITED (ASX:LTR) - LTR: Short squeeze coming for shorters - 2nd highest likelihood in all ASX, page-26 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by anatol: ↑

LTR has the 2nd highest likelihood of experiencing a short squeeze for shorters in all ASX.

It is highly probable now that the shorters will go into a short squeeze and the sp will go up significantly IMO according to data from Fintel.
According to Fintel's data, LTR has the 2nd highest likelihood of experiencing a short squeeze for shorters in all ASX.

What is Short Squeeze?

The global firm FINTEL explains it on its web site.

"A Short Squeeze is when a company with a high degree of short interest increases in price, which forces short sellers to "cover" their short interest by purchasing actual shares, which in turn drives the price up even further".

Here is the ASX short squeeze list of Fintel;

It's a scientific method

Fintel's Most Shorted Stocks Australia (ASX) uses an advanced quantitative model to determine companies that have the highest likelihood of experiencing a short squeeze. This model is a proprietary, multi-factor model that uses a number of factors, including Short Interest % Float, Short Borrow Fee Rates, and others.

You can see on Fintel's page for LTRthat the interest rates for shorters are also increasing for the shorters. It's now 2.62% pa. That is not a big deal in comparison to what they will lose on their short covering though.

I said before I'm not worrying about the shorts. In contrary I'm happy they short this much. The shorts has now reached to 134m shares.

Perfect storm for the shorters is on the way..!

The shorts was about 75m about a months ago, but they shorted another 65m in a month time! You can see it on the daily short data below.

Do Blackrock-Vanguard-State Street (BVS Group) want to build a large stake in LTR?

We will see soon. They can't buy enough to have 5% for giving substantial holder notification because not many seller around. They can't build up their stakes enough. Volume is too low. If they drop the sp more than this then no one will sell out to them.

Firstly we should ask;
why they are shorting that much?
Is LTR have a problem?
No not at all. The shorters know that very well.

In contrary they want to build up a stake in LTR IMO.

But the shorters and the buyers are different companies (fin. instos).

While the fins instos like Morgan Stanley, JP Morgan, Merrill Lynch are shorting, Blackrock, Vanguard and State Street are buying.

For example the shorts went over the roof for SYA but in Dec. 15 State Street has become substantial holder in SYA.

BVS Group has control of all those instos by 15%-20% holding.
When those instos make loss of $100m in shorts, BVS group only pays 20% of it. However BVS group is having the opportunity to build large stakes in the shorted lithium miners. Small loss big gains for them.

Merill Lynch is owned by Bank of America and see who is in control of BoA.

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As always, thanks @anatol for your great posts!

I have sold many of my CUV shares in favor of LTR, but am still respectable invested in CUV.
Now my two largest investments are the two most likely candidates for a short squeeze according to Fintel....

As for LTR:
The short sellers, if they then have a shred of sense (which I doubt), should keep several risk factors in mind!The well-known already posted several times:
- Buldania results
- Increasing lithium demand in battery grade/decreasing supply.
- possible TO offers anytime
- steadily decreasing number of "weak hands", because more and more holders have become aware of the true value of LTR
- steadily increasing number of newcomers (see @Scarpa etc.), who have waited on the sidelines until now
- further short attacks are increasingly coming to nothing
- the clock is working against them, day X until production is getting closer and closer

Furthermore, I would also like to note that it is possible at any time that TG or a large investor strikes...
Also, not all short sellers are friends with each other. The smarter ones among them, who have shorted between $1.80-$2.20, could decide to cash out at any time...
And then they also have to meet their lending deadlines....
If I were a short seller, I would have sleepless nights with regular panic attacks!
But what do I know?
I would have preferred LTR to have had a justified and regular SP increase until production.
But now I'm waiting for the inevitable day/week/month where our SP shoots disproportionately through the roof!
This could be quite a bloodbath....