Okay I'm calling this one. I'm saying a squeeze is just around the corner.. With just under 32 million shares currently short as of the 24th of Feb they stand to lose too much if the price runs higher. I would say 15 - 20 million need to be covered to bring short positions back to a comfortable level.
So where will 15-20 million shares being purchased on market take us?
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Below is a good read..
http://www.*********.com.au/wiseowl.asp?a=AV&ai=37150
"Historically TFS has achieved revenue growth of 31% and NPAT increased 57% pa over the past four years. TFS expects harvest volumes to rise ten times in FY16. The company sees 2016 as the first year with meaningful harvest, leading to larger business operations with scale. Fewer supply constraints will encourage the company to diversify in terms of markets and geographies. If sufficient sales can be realised it should translate into enhanced earnings quality and spike up consumer demand. Furthermore market validation and capital management initiatives should support the positive momentum."
So why on earth would you short into a transformational year? Because it has worked for you in the past? haha. It wont work this time.
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