Baz,
<<Anyone know why we're heading South? Down three points in as many days. What's up?>>
I'm in no way close to the company and am as in the dark about this as anyone else. I can say that in following the stock for over a year the current price action does not strike me as all that unusual. It seems to drift lower between prove-it points (earnings reports, announcements of seasonal sales orders, etc.) I just checked viwes.com for short interest and see that short interest has risen from 1.9m to 2.5m shares from 1/98 to 2/98. With the rise is avg daily share volume the avg days ratio (short shares/avg volume) actually went down, from 9.8 to 7.6. Still, this strikes me as a lot of short interest for what I think of as a fairly obscure small-cap stock. Then we have the question, do the shorts think they see something fundamentally wrong with the stock, or are they merely reacting to what has been a very good run in the stock to a new 52 week high recently. Everything I've seen over the past year, since my original purchase at around $18, indicates that the company is performing to plan and is stronger and a better value now than it was then. So, I don't know what the shorts see in this stock (if I understand the short data correctly) other than what they may feel is a high valuation (p/e) in a toppy market during a relatively slow season for TNFI. My impression is that their progress has justified the current 27 p/e, but others may feel differently. I welcome any thoughts about this. Any shorts lurking out there? Why are you shorting this one? (Btw, if I weren't so lazy I'd check what pct of the float the short interest represents.) Of course, the shorts are going to have to cover sometime. They are not going to cover with my shares at this price today. I'm going to hang in until someone beats me over the head with some concrete news or information. Could happen - we'll see.
John |
