Last week, short sellers were in focus as Hindenburg Research released a short report about Block (the owner of Buy Now, Pay Later pioneer Afterpay). Recent data from ASIC, as reported in this article from The Age, suggests that Australia’s lithium miners have also been a target for short sellers.
Three lithium miners that have seen increasing short interest (the percentage of a company’s shares that are held short – i.e. investors are betting the share price will fall) are Core Lithium, Liontown Resources and Sayona Mining.
These three lithium miners are in the top six shorted Australian companies. (Side note: top three overall are #1 Flight Centre, #2 Core Lithium and #3 Zip)
These lithium companies have seen big share price rises as the price of lithium has run up over the past few years. But as the lithium price falls (for example, China’s lithium price is down about one-third in the past month) there is concern that some of these lithium miners will fall alongside it.
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