Short thesis?

It's easy to find a bull thesis for uranium in the domain of stock trading forums. However, we are seeing a massive institutionally driven short across all easily borrowable uranium stocks (included in the indexs).

For example, out of the top 11 most shorted stocks on the ASX (numbers as of posting), four of these companies are uranium stocks (LOT, PDN, BOE and DYL).

This is a significant bet. Yet trying to identify what this thesis is, is seemingly hard to find. At least as far as retailers are concerned. Either retail are being used as the sacrificial lamb as usual or the shorts are finding themselves in a double-down and controlled exit situation.

We have encountered a decent downturn, however, a lot of this short interest ticked up around those lows. We now have a significant portion to be bought back.

We can look at VWAP and finger in the air that they're still in the money, however the shorts are not slowing down, but increasing to their positions. As we continue to see a recovery in the sector. At least for now.

Though if we are to look at the news flow, it seems like this is a sector only gaining further attention, especially with the data center energy consumption.

We can project these returns on external investment will take time and the shorts can unwind. But even that short-term vision seems risky given the sentiment towards nuclear is changing.