LIONTOWN RESOURCES LIMITED (ASX:LTR) - LTR: Short squeeze coming for shorters - 2nd highest likelihood in all ASX, page-49 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by anatol: ↑

The info below is given in relation to high level of shorts in LTR.
It's educational.
The info link is here; https://www.wallstreetprep.com/knowledge/short-squeeze

What is a Short Squeeze?
A Short Squeeze occurs when securities with a significant short interest rise sharply in value, which further accelerates the upward price movement from short-sellers closing out their positions.

How a Short Squeeze Works (Step-by-Step)

A short squeeze is initiated by the share price of a company with significant short interest (i.e. investors holding short positions) increasing, which causes short sellers to exit, creating a positive feedback loop wherethe share price continues to rise.

In a short squeeze, a positive catalyst such as an unexpectedly strong earnings announcement causes a company’s share price to rise, and short-sellers run for the exit to cut their losses.

Before a short squeeze takes place, the general sentiment surrounding the underlying company’s outlook is disproportionally negative.(NOT IN LTR'S CASE. WE ARE VERY HAPPY WITH LTR). So in anticipation of the current share price continuing to fall, a significant amount of short interest mounts up among investors. (NO AGAIN, LTR'S SP IS NOT GOING DOWN ANYMORE, EVEN IT GOES DOWN I DON'T CARE)

However, in a short squeeze, the company’s share price unexpectedly increases instead, to the surprise of many short sellers – therefore, in an attempt to limit their total losses, short sellers bail and begin closing out their positions, i.e. to “cover their shorts.

”The sudden spike in sellers trying to exit their positions by purchasing shares accelerates the upwards momentum of the share price even more, i.e. effectively creating the so-called “short squeeze.
”Short-Seller Collectively Exit Positions ----------> Repurchase Shares @ Current Stock
Price Rising: Share Price + Lack of Supply------->Accelerated Upward Share Price Movement

...

Simply put, short selling is a risky strategy – and the general process is described below.

Step 1 → The short-seller borrows shares from a brokerage to sell them in the open market under the belief the share price will soon decline.
Step 2 → Later on, the short-seller must repurchase the borrowed shares at the current share price to close out their positions.
Step 3 → If the share price declines, the short seller can repurchase the shares and profit from the difference between the price at which they were sold (including transaction fees) and the price the shares were bought back – but if the reverse occurs, a short squeeze can transpire.

By continuing to hold their short positions, short-sellers can incur substantial losses— in which the potential downside is theoretically limitless.

Even if the investor remains adamant about being correct on their short thesis, the shares previously sold were borrowed shares, so the shares must eventually be returned to the brokerage firm or institution that originally lent the shares.

Sometimes, as part of the contractual agreement, the broker can place additional pressure (or even force) the short seller to buy the shares and return them.

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Hello Anatol,
I was part of the KDR rollercoaster from about 2017 to 2019 and got about a 10 X from that.
When the dust was settling from the Wesfarmers purchase I recall someone on HC asking you where to put their money now and you suggested LTR which I watchlisted for about 3 months and did my research and ended up buying between 5.5 and 12c ........ and I bought a lot.

In the 14 years I have been an active investor on the ASX this is the best strategically planned and practically executed explorer/developer I have had the pleasure to own a part of.

During the recent subterfuge and 'manufactured' price dips from the useless eaters commonly referred to as the BEOT I have been selling other long held assets to accumulate more LTR shares.
Longer term my preference is for dividends but like KDR I am aware that any day that notice icon can appear next to the stock code with news or an offer that multiplies your wealth in an instant.

I have the utmost respect for you and cannot thankyou enough for your quest for knowledge, dedicated research and generosity.
I already lead a comfortable life but you have enabled me to extend that comfort to family, friends and my community.

I sincerely hope I can thank you in person some day.

To all fellow believers that the sharemarket is a place where capital attracts good ideas and enterprise for the betterment of all humanity I raise my glass to you and our mutual good fortune come 2024.

No.	Vol.	Price($)
2	89338	$1.41

No.

Vol.

Price($)

89338

$1.41

Price($)	Vol.	No.
$1.43	99382	10

Price($)

Vol.

No.

$1.43

99382

No.	Vol.	Price($)
2	89338	1.405
3	6291	1.400
3	33377	1.395
6	194545	1.390
4	86179	1.385

No.

Vol.

Price($)

89338

1.405

6291

1.400

33377

1.395

194545

1.390

86179

1.385

Price($)	Vol.	No.
1.430	99382	10
1.435	136711	7
1.440	48368	7
1.445	18575	4
1.450	334550	19

Price($)

Vol.

No.

1.430

99382

1.435

136711

1.440

48368

1.445

18575

1.450

334550

(20min delay)
Last $1.43		Change 0.025(1.79%)		Mkt cap ! $3.454B

Open	High	Low	Value	Volume
$1.40	$1.43	$1.38	$15.16M	10.75M


Last $1.41		Change 0.025 ( 0.24 %)
Open	High	Low	Volume
$1.40	$1.42	$1.38	2394503
Last updated 15.59pm 16/05/2024 ?

LTR: Short squeeze coming for shorters - 2nd highest likelihood in all ASX, page-49

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