One simple definition of a strong stock is one that consistently goes down less than the overall market when it is down, and goes up more than the market when it goes up........or goes up when the market is down. Add in strong volumes and it's a whole new ballgame. NTRI has been displaying these attributes since the full rollout of product at Wal-Mart.
Having Wal-Mart approve the full rollout is like having some very smart insider eyes telling us what is going with the sales in those stores. It means it is a successful launch which not only means a big increase in sales, but opens up all kinds of possibilities, including new foreign markets and new innovations which could be marketed through Wal-Mart.
Current trading indicates that longs have decided that NTRI is cured of what has ailed it and the company is now in the midst of a new paradigm that investors had once lost hope for. What remains to be seen is where this rally will end. $20 by the end of the year isn't impossible, and $15 looks like a minimum.
I would think that shorts must be re-evaluating their positions right now and they may even be part of this powerful move up. A big short position like that is always a nice slingshot for a move up. A short-aided downtrend only occurs when the short position is increasing. 14% shorts sound like they are maxed out.
The main question mark is the dividend. Since they are running out of cash, they may have to cut it back until earnings recover. That may prove unpopular with some investors and slow the rise in the stock value. At $10, it's a big dividend but not so big at $20 so the company will have to be careful in how they handle this. If they do not cut it back, it will be a super indicator that they are making lots of positive cash flow from their newly rising sales and investors could bid this up past $20.