LTR: Short squeeze coming for shorters - 2nd highest likelihood in all ASX, page-3601

Short interest in lithium stocks. Data at the end March is now available.

The aggregate short interest in the 7 big names I track is now in aggregate just over US$5.1bn. A new ATH for this cycle. $ values increased in part due to higher share prices, but the SI across the sector as % of share count still increased between mid and March in most cases.

The shorts have an equity bet now equivalent to ~60% of the revenue base for the entire global lithium industry. Puts into perspective the negative sentiment rather than the financial risk that is being taken on. That's because they can't short the commodity.

Most of the names I track don't have much if any balance sheet risk. The shorts are IMO taking on a pure bet on the commodity price. When the lithium price sustainably turns, and its a when, not an if IMO, the short thesis goes. HFs move in packs. Watching them all trying to cover their shorts at the same time will be fun to watch & make the recent solar eclipse look like a daily occurrence.

$ALB SI now at ATM and 12.5% of the equity and up from 12% mid March.
$PLS SI up small from mid March to 20.6% of the equity.
$SGML up in the period to 17.6% of the ex A10 free float (16.9%)
$SQM remains small as % of share count, but large in $ terms.
$ALTM up to 6.7% vs 5.6% mid March
$LTR 10.1% (9.6%)