Being suspicious is part of the practice in this world but I think anyone who contact me will tell you I am serious about making the transaction unless they hold too few shares. As you probably know from experience, your position often sets your action, for example, I wouldn't expect anyone who holds since 100 to sell it to me at 1, but I would expect it from someone who bought in the last days. Now, you don't know my clients position, lets say he sold at 20. is it logical for him to try to close at 1, and avoid even a little chance of recovery ? Another thing you overlook is the collateral effect. holding a short position demands money sitting as collateral. since the price now is relatively high and the trading stopped, it prevents using the money for other trades. And what if that money or part of it is a credit/loan ? Not posting to convince you but for the sake of argument, trying to show you that the view changes according to your position.
Thanks spikeyj for the reply , it just seems crazy that this guy wants to buy shares which are supposed to be worthless or are they the plot thickens ,in my mind the money gone but never say never gla mr lithium
shorters do not need to close out to make their money if the company is going to be dissolved. the short is not null and void when that happens, rather than shares become valued at zero when formally declared void.
but it is possible that an impatient shorter who doesn't want to wait for the shares to be formally declared null and void through company dissolution might prefer to close out their position by otc purchase of shares while in suspension.
only real logic i can see for doing that would be to avoid the [tiny] risk for the shorter that the company shares do end up being relisted and trading again still as Lond post suspension with some value being preserved for shareholders after all. the probability of that seems very, very, very low at this point.
(i suppose the other motivation might be something fairly specific in a poorly drafted contract between a shorter and someone lending them shares which allows the lender to demand the shares back at a certain time, even if shares are in suspension -- but surely, any competent lawyer should have foreseen and prevented that contingency??)
overall, does seem very odd that someone wanting to purchase effectively worthless lond paper does so via touting on an LSE bulletin board -- i find it very hard to believe that any professional agent needing shares for above reasons would not have much easier access to larger supplies of dud shares by other channels than touting to pis on bbs.
so while I wish anyone here luck in trying to get even a small amount for tidying up, i do suggest caution in giving away any personal information etc. to this poster. it is also generally advisable to be careful about posting email addresses on the bbs, since they can be harvested and sold on which can generate spam etc.
i am not sure whether or not these kinds of postings are permissible under lse bb rules, so i have reported them anyway just so that lse admin are aware that the bulletin board is apparently being used for this purpose, and they can take a view about whether or not this is a permitted usage from a newish and relatively unknown poster.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.