The Dick Smith share price has bounced up 15%

Credit: hnnbz

Dick Smith Holdings Ltd (ASX: DSH) has seen its share price rocket up 15% in lunchtime trading today to 32.2 cents.

That follows yesterday’s monster 57.6% plunge to 28 cents, following a surprise writedown on its inventory – even before it had completed its review. That suggests more bad news is on the way.

Dick Smith shareholders might at least be happy with the following chart…

dick smith share price

Source: Yahoo Finance


The problem is that despite today’s rise, shares are still down 53.6% for the week, and short sellers are likely betting on more falls ahead.

Dick Smith is one of the most shorted stocks on the ASX, and has been compared to beleaguered department store retailer Myer Holdings Ltd (ASX: MYR) which happens to be the second-most shorted stock on the ASX.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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