MENU

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.

JUST RELEASED! Our top dividend stock for 2015-2016

If you're after fat, fully franked dividends, you won't want to miss this. The Motley Fool has just issued a brand-new report, complete with all the details on our expert analysts' #1 dividend stock for 2015-2016.

Click here now for your FREE copy, including the name and code! No credit card required!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.