The JB Hi-Fi Limited (ASX: JBH) share price could be volatile in the weeks ahead with the company due to hand down its full year profit report in around two weeks' time.
The electronics retailer is guiding for net profit to climb to a range between $200 million to $206 million on sales of $5.58 billion, with its Good Guys acquisition accounting for around $1.25 billion of total sales.
It also advised that same-store sales for JB Hi-Fi stores for the quarter ending March 31 2017 were up 8.2% and that group profit will be up more than 30 per cent for the year.
This sounds good, but not to a swarm of hedge funds and traders that are betting heavily on the JB Hi-Fi share price falling over the rest of 2017.
Today JB-Hi Fi shares change hands for $26.53, with nearly 14 per cent of the stock on issue short sold by traders who are expecting to buy back the stock cheaper, before returning it to its legal owners.
These short sellers will pin their hopes on sentiment turning against JB Hi-Fi due to the arrival of electronics good discounter Amazon in Australia. It will target its share of JB Hi-Fi's $5.58 billion in sales and could decimate the market share and margins of operators like JB Hi-Fi.
Investors then could be in for a wild ride as the bulls and bears fight it out over the short-term direction of JB Hi-Fi and other under pressure retailers.
