RFG is strong, cheap and high yielding, page-152

Dear joel1986

The negative sentiment may evaporate if/when this stops being the 6th most shorted stock on the ASX. See www.shortman.com.au

You are correct that the profit downgrade by itself wouldn't have caused a fall from $4.40 to $1.98. The profit downgrade caused a fall from $2.65 to $1.98. The rest was only "sentiment" but today unfortunately it has been proven that where's there's smoke there's fire.

I was also going long until today. But because of the amazing sudden guidance downgrade coming so soon after +6% guidance had been reiterated, today I suddenly lost all confidence in management's ability to turn the company around before the banks and/or other creditors put RFG out of its misery. Otherwise I would also be "riding out the storm" and even buying more. Another factor is that I realised belatedly today that the apparent strong buying interest apeearing out of nowhere was coming mainly from shorts covering when their profit target for the day had been reached.