Why Standard Lithium Stock Bounced Back Sharply Today
Standard Lithium (NYSEMKT: SLI) stock bounced back sharply today after plunging yesterday, rising as much 12.9% as of 11:55 a.m. ET. Investors are buying into the lithium company's response to a short-seller report.
On Nov. 18, Blue Orca made several allegations against Standard Lithium, calling it a classic penny stock and questioning its lithium recovery rates and the viability of its business of extracting lithium directly from brine, among other things. This morning, Standard Lithium's management called the report "false and misleading."
Blue Orca's key point is that Standard Lithium's claimed recovery rate of 90% at its demonstration plant in south Arkansas was false, as the company's regulatory filings revealed the project was only achieving a fraction of the projected recovery rate.
Source Fool.com