Shares in electronics retailer JB Hi-Fi are on a run.
The retailer, whose shares are in the 10 most shorted stocks, is getting the benefit from this week’s cut in the official cash rates and from the final closure of competitor Dick Smith.
JB Hi-Fi’s share price is up 10% this week, hitting a record high. A short time ago, the shares were trading at $24.10, up 1.8% today.
And as the shares keep rising, those who’ve shorted the stock are being pushed into the market to buy. About 10% of the stock is short.
And today the market got more good JB Hi-Fi news. The company presented at the Macquarie bank conference, reporting good sales momentum in the second half and strong promotions planned for May and June.
JB Hi-Fi company confirmed 2016 guidance of $3.9 billion in sales and net profit between $143 million and $147 million.
Matthew Felsman at APP Securities says, in a note to clients, that record highs will test the conviction of short sellers.
“A move above $24, should see large short covering that could send JBH closer to $30 like it did in mid-late 2009 when it surpassed the 2007 high.”
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