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…
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.