Less shares in circulation for them to borrow, higher the price the spreads become tighter- 25p share could be 24p-26p,workable if you have borrowed millions.250p share could be 245-255,not as good if those millions wern`t available to borrow. I would imagine they might baulk at taking a chance with far less ammunition to play with.I think companies like to have a higher share price symbol,as it leads to investors thinking the company is "doing ok" and give it a look.I think other people have different views on shorting, but mine is obviously that they are very experienced operators,and take the minimum of risk.
Bought in again on Friday, eyeballed the "massive" rise early today and thought Bingo,timing perfect. I now realise that the shorting merchants are still in charge here,will always be while this share remains as a penny share.The private investor is being kidded into buying into this share,evidence for all to see today,up 15% then smashed down in hardly any time to react,is it a waste of time getting involved? It WILL rise again,but for how long?The Board should react and make the share price one for ten,this to disinterest the shorters completely.
Good points FredG. The good thing about Cooks is that they don't have over capacity. I can also see Tunisia coming back on sale in the next few months. Egypt is a big market but has a long way to go. I see price has dipped below 60p so it is starting to look attractive It moves down to 50p it will be in play. GL
Fill your boots. 2/3 of Tcg ebit to be translated into £. Will the scandis stop holidaying, no and nor will we. Ok, 2016 may effect debt repayment/ divi strategy, but for the positive in long term. Are we hedged, yes. Are our clients more diverse than on the beach or jet 2, yes. Are our destinations diversified, yes. Will this impact our main competition, low cost carriers, yes. Is the model more robust than tui to a shock, maybe given asset light strategy and 3rd party flying proportion. Just some counter arguments to dread...
I still think this will go lower IMHO. The demand for overseas holidays in the short term will slow down. Euro heading below 1.20, dollar around 1.30 does not make it attractive. The holiday market is going to have a tough time in the next couple of years.
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