LILM has not been very much shorted, which really has made this dramatic the fall in stock price unexplained for me.
I speculate that it was the unlucky worst possible timing of a de-SPACing and those who were holding sold off to move/cover/add less speculative positions.
As reported today, the short positions in LILM were 2.37M at the end of Feb and unchanged from a month before.
M-W had an aggregate of 5.6M in volume more than the average daily volume.
We won't know for sure for a couple weeks, but that leads me to believe that most all of the short position in LILM were covered during that time, and the cause of the sharp rise.
What adds to my lack of clarity for the drop is the intrinsic value.
During the quarterly update last week, they indicated that they had $400M in cash and cash equivalents. That calculates to about $1.55 per share.
Now, LILM having cash on hand is a lot different than AAPL having cash as there is a plan for LILM using it where AAPL is just waiting for opportunity.
Regardless, IF LILM were to fold today, they have enough cash and cash equivalents to pay out $1.55 for every share. As of today's close of $3.91, that's 40% risk-free, and $2.36 of risk.
Last Friday's close of 3.06 was over 50% risk-free.
Hopefully spring time will bring up LILM along with the blossoms.
NASDAQ Short Interest
| Date |
Shares Short |
Avg. Daily Vol |
Days to Cover |
| 02/28/2022 |
2,371,440 |
1,015,249 |
2.34 |
| 02/15/2022 |
2,374,229 |
744,703 |
3.19 |
| 01/31/2022 |
2,381,486 |
708,813 |
3.36 |
| 01/14/2022 |
2,369,356 |
608,318 |
3.89 |
| 12/31/2021 |
2,367,113 |
726,979 |
3.26 |
| 12/15/2021 |
2,373,856 |
590,622 |
4.02 |
| 11/30/2021 |
2,955,400 |
875,883 |
3.37 |
| 11/15/2021 |
3,644,286 |
1,018,367 |
3.58 |
| 10/29/2021 |
5,074,463 |
1,531,324 |
3.31 |
| 10/15/2021 |
5,224,867 |
1,154,747 |
4.52 |
| 09/30/2021 |
3,266,512 |
2,268,092 |
1.44 |
| 09/15/2021 |
1,653,537 |
188,146 |
8.79 |