Why are Lake Resources shares receiving the most attention on Friday?

A man and a woman sit in front of a laptop looking fascinated and captivated by ASX shares news articles especially one about the Bannerman Energy share priceA man and a woman sit in front of a laptop looking fascinated and captivated by ASX shares news articles especially one about the Bannerman Energy share price

Lake Resources N.L. (ASX: LKE) shares are flying off the shelves on Friday despite no news having been released by the company today.

Still, investors have traded nearly 22 million Lake Resources stocks so far this session. That makes it the most traded share on the S&P/ASX 200 Index (ASX: XJO).

Although, the increased interest hasn’t bolstered the Lake Resources share price. It’s currently trading at 59.5 cents, 1.65% lower than it closed yesterday.

For context, the ASX 200 is currently down 0.82%.

So, what might be going on with the lithium exploration company on the ASX today? Let’s take a look.

Lake Resources shares fly out the door on Friday

While there’s been no news from Lake Resources today, the company’s shares have been the talk of the town for most of this week.

Drama in the company’s camp kicked off on Tuesday when it was the target of an attack by short seller, J Capital.

The Lake Resources share price was halted as the company prepared to respond to accusations detailed in a report published by J Capital. That response was released yesterday.

The company claimed the report “puts forth incorrect information on technical matters and inaccurate assertions on Lake Resources’ progress to date”.

Notably, Lake Resources hit back at assertions that direct lithium extraction technology wouldn’t work as planned at the company’s Kachi Project, saying the short seller “criticis[ed] the wrong process”.

Unfortunately, it seemingly did little to quell some investors’ concerns. Lake Resources’ stock plunged 10% on Thursday.

On top of that, the company remains one of ASX’s most shorted shares. Around 9.6% of its stock was in the hands of short sellers at the last count. That leaves its short position 5.94% higher than it was a month prior.

The Lake Resources share price has also fallen more than 60% over the last 30 days. Though, it’s currently 80% higher than it was this time last year.

The post Why are Lake Resources shares receiving the most attention on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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