Lithium stock bubble pops for retail investors – by Tom Richardson (Australian Financial Review – February 14, 2023)

Benchmark lithium carbonate prices fell for an eleventh straight day in China on Monday to an 11-month low, as short sellers raised their bets on Australian lithium stocks falling in 2023.

The latest ASIC data shows that five of the 16 most shorted stocks on the ASX are lithium hopefuls, after a younger demographic of retail investors hooked on mobile share trading apps made the same businesses the most popular stocks to own in 2022.

Core Lithium, Liontown Resources, Lake Resources, Vulcan Energy and Sayona Mining all have between 6 per cent and 10 per cent of their outstanding shares shorted.

Core Lithium was the most popular stock to trade among retail traders using budget brokerage app Stake in 2022, with Lake Resources the fourth most popular stock to buy, and Sayona Mining the seventh most popular, Stake’s data shows.

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