Only two days evidence to go on so far, but if Thursday and Friday are representative of the sp movement when they are closing the short - Roble closing will lead to a rise of 90% over Fridays close, all shorts closing would be 145%, assuming they make a nice orderly exit. This would give a sp of 275-350p. Past evidence shows that once Roble start to close they unwind the whole position quickly, so this could happen in 4-6 weeks, if they keep closing.
These figures are not "pie in the sky", it's just where the sp was 4 months ago. Sure there have been some negatives since then (listing/rac) but also many positives, including all targets continuing to be hit, cash flow ahead of target, risks period for cash flow now behind us. It's where the Sp should be as a minimum, so seems more than possible.
We will have a better idea once there are more days to go on, particularly interested in Monday. I'm hoping coatue or ennismore increased their short..
Matty - I'm sure that was not intended as such but it was a bit below the belt that...........understanding how shorters operate does bot tell you how low they can get a stock price. The main thing is to understand their methods and make a judgement whether to get out or stand your ground and average down if you can. I think Bro and many other made the right decision to ride this out...Cheers, Chris
Shares in Qunidell, the AIM-listed outsourcer, jumped by 16% after it signed a five-year contract with one of Canada's top three insurers, believed to be Aviva Canada. The company has been dogged since April by claims from Gotham City Research, a short-seller, that it was "a country club built on sand". The note sparked a legal action against the investor by the company, a favourite among retail investors. Canaccord Genuity, Quindell's stockbroker, put out a friendlier note to clients, estimating that the latest performance-related contract could earn the group as much as $65 million in annual revenues. The analysts maintained their "buy" recommendation and target price. The shares rose by 22p to 162.5p.
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