TFS Corporation (TFC) - Shorts To Get A Wedgie
There is a 37.1m share short interest in TFC: ~10% of shares on issue and equivalent to ~50 days’ trading. This is unwarranted. The last couple of years has seen the Company consistently deliver against operational and financial goals, and TFC is set to benefit in FY17 from a jump in operational cash flow on the back of a much bigger, largely on balance-sheet, harvest. The AGM presentation confirms TFC’s momentum and, in our view, the reasons to short the stock will get tested this financial year. Buy maintained.
