MENU

Retail Food Group Limited shares surge 11% higher

One of the best performers on the local share market on Wednesday has been the Retail Food Group Limited (ASX: RFG) share price.

In afternoon trade the embattled food and beverage company’s shares are up over 11% to $1.04.

Why are they climbing higher?

With no news out of the company or broker notes to speak of, today’s push higher could be due to short sellers closing positions.

In order to close a short position, a short seller must buy back however many shares they short sold.

This can often lead to a sudden rise, or short squeeze, in the price of a heavily shorted share.

The most recent data from ASIC reveals that Retail Food Group has over 11.1% of its shares in the hands of short sellers.

This makes it the tenth most shorted share on the ASX behind Myer Holdings Ltd (ASX: MYR) in ninth position and ahead of Mayne Pharma Group Ltd (ASX: MYX) in eleventh position.

Syrah Resources Ltd (ASX: SYR) continues to lead the way with a massive 21.4% of its shares held short.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. 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 Scott Phillips.

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.