Friday, January 13, 2012
FFN - Over 20% of Float Is Short - Squeeze Coming?
I've been writing about FFN since it broke below a dollar and hit the low $.50's. The stock is now in recovery mode, and while it is trying to watch, it is clear that the stock is working its way higher now and the selling has abated. What hasn't abated is the short sellers. The short positions in the stock increased from the previous report and now stands at almost 21%.
As the stock continues its climb out of the ditch, shorts will be looking to cover and take their profits, which, when 20% of the float is short, could lead to a nice short squeeze. Factor in the bullish looking charts and you have a stock that should post a breakout in the short term.
I still feel a push to $1.20 - $1.50 is entirely possible. This was a $10 stock less than 9 months ago and once it starts to squeeze higher there is really no telling exactly where it will go. One thing we do know, shorts need to buy back stock to profit from their bets, which only adds fuel to the fire.