Sentiment is a strangebeast. The herd tends to go for whatever sector is popular such as property or stocks that may turn out to be the next tech invention to take off with market caps pricing in as yet unrealised profits.yet some sectors like oil exploration are falling out of favour with a few exceptions. I've just read the RNSs of 19/9 and the deal with Phillips. When you re-read the one of 19/9 from top to bottom slowly the news is so good and detailed its difficult to absorb it all. Yet the market treats this company as if its got leprosy. With the chairman making it quite clear that business over the second half is expected to continue more strongly than the second half we should have a lot to look forward to. It will certainly be interesting to read the next trading update which should be in january. Mr market needs to look at this. Rising revenues, eps and profits is what good businesses are about and Iqe as far as I'm aware has it unless I'm missing something. Give those RNss a second careful read.
I'm not a fan of shorting but can see that it's another form of investing (or gambling if you like)! I'd sooner get into a company at a low price and watch it grow, I've done pretty well n the last 6 months on a few companies but unfortunately this isn't one of them just yet.
Total short positions of 4.5% odd are not big enough to have much effect anyway. Like you I believe its just their speculative positions on this company and that's all. I hope they get burnt because I loathe this business of hedge funds etc being allowed to borrow shares from pension funds whilst us lot can't. It is'nt a level playing field. We can buy CFDs from IG or elsewhere if available but the gearing is too dangerous for me. Maybe if the market introduced call and put warrants it might be fairer. The gearing on these instruments can be equally volatile especially towards their expiry. Purely for skilled traders with nerves of steel.
Thanks for your replays guys. I guess this must be speculation as you say. There isn't anything fundamental about this, is it?
If you read my last you will notice that I said I sold half my holding. By simple deduction I have the other half in shares (IQE).
When I first bought into Ocado the shorts were over 15% over 3 times what they are here, Ocado's SP increased over 400% in 12 months, it's all down to market sentiment as it will be here
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