FFN - Finally

FFN is finally starting to break out. The stock hit bottom in the low $.50's and has started to work its way higher. Today it was up over 20% on a breakout type move.

As I have stated many times, FFN has almost 20% of its tradeable shares short. The shorters have done well from $10 down to $.50, but at some point shorts have to cover to take their profits. Covering shorts = additional buying pressure and could lead to a "short squeeze" where over zealous shorts cover their positions. The question is are we at the start of this covering phase? or was today the final day and the stock will plunge to new depths tomorrow and into 2012?

I think there is a strong case for further gains. I particularly like how during this decline the stock has traded just under its 50DMA before taking out new lows. If this happens here we could see FFN rally to almost $1.20.

Today FFN traded 10% of its tradeable float at 776,346 , the float is 7.6 million shares.

The last reported amount of shares short is 1.18 million. These numbers are from almost a month ago. They could be different today.

I'll be watching for the increased volume to continue and I would not be surprised at all to see more of a squeeze tomorrow which could put this stock back over $1 a share and closer to its 50 DMA.