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No problem, BP. I added them to my to do research list and when I get my head around it I will post it here. :0)
Appreciate the views guys, it seems Bronte hold open positions in various international markets and I agree it looks like a punt. The thing that made me feel a bit uneasy is that Bronte is an Australian hedge fund and the drilling contractor for Rukwa (Mitchells) is also an Aussie company.
Teach me to go to the gym and miss out on all this shorting skulduggery.
Good research by everyone - it would appear that it's just a punt and nothing based on inside info.
Hi MR ST yeh I think they warrant a good hours worth of research and see what their strategic plans are for the next 3-5 years. Operating in the kitchen appliances market doesn't sound sexy or exciting or huge room for growth but they seem to be delivering growth pretty well. Let me know what your thoughts are when you're done with the research.
Cheers
BP, "All add KETL to my "to research on" list. Thanks Bronte".. my exact thoughts! Thanks again for the nice summary on Bronte. Top Dude! :0)
Wyn, have a look at KETL chart, the company Bronte shorted..what a lovely chart upwards they have.
I wouldn't worry about the short position. Bronte might actually be genuine share holders and employing a hedging strategy right before news. They might think the drill could go either of 2 ways right now and if the SP does drop on negative news, then they'll benefit from the short position, if its positive news, they'll close the short and let the SP increase.
Hedging sounds easy in theory but not in practice.
Further to that, they shorted KETL back in Oct but if you look at that company's SP, it has just increased in value over time. Never looked at the company myself but just reviewed their accounts and they seem to be engaged in manufacturing and supplying kettle safety control components etc. Business is growing by circa 3.5% annualised over the last 5 years and operating profit by 4% while doing well during the pandemic years.
They are forecasted to return steady growth over next two years. Balance sheet is ok, they've taken on some debt but need further research to understand whether this is good debt to expand business or not (sounds like good debt). But they have a steady business there.
The only reason I think Bronte opened a short position on that business is because they must think its over valued at the moment (valued circa 21 x current earnings) but if they keep delivering, no reason for SP to drop.
All add KETL to my "to research on" list. Thanks Bronte :)
Regarding HE1, nothing to worry about.
BP
Imo they are getting just what they deserve.
If they took the short out 2 days ago they are already sitting on a 25% loss.....It becomes tricky if they have no inside info when to close out. The longer they leave it the SP could appreciate further, and then any buying (from them to close) forces it up further and if news should break with the short still in place then that's the annual bonus gone.....
Josh ehat a load of cr ap. IN CHECK FFS
Shorts help all genuine holders lose money
Thanks for the info folks
I investigated Bronte Cap. last night. They've got a horrible record when it comes to their short positions so there's little to learn from their short position in HE1.
Short trading is a good and important part of stock markets anyway, it helps keep things in check.
9 october - 235p
today - 321p
bless
Bronte Capital Management Pty Ltd Historical Short Positions
Company % Short Date Changed
Strix Group (KETL) 0.50% 23 Nov 2020
Strix Group (KETL) 0.61% 9 Oct 2020
nuff said about them
I very much doubt they know anything more than we do... its just a gamble pure & simple
Candid,
After discussing it with a mate and the wife, we all understand, and that is really pretty obvious, shorting an AIm stock is certainly one very risky thing to do. AIM stocks can suddenly jump 100% or more depending on the news, and we all know what can happen here.
However, if you still want to do it on an AIM stock, how can you do it without you burning yourself badly? You do that by leveraging, or, you buy the same amount of stock whilst shorting it on the other hand. So, whatever the news is, you coverend yourself by closing the short whilst still making money on your held position. This is quite common.
And, what this mate of mine said was that the track record of Bronte Capital Management Pty Ltd regarding shorts is not that great, unless, of course, the leveraged the short, which then is another story.
ATB
B1ll, you can click on the ‘HE1 short positions’ icon on this site or visit the shorttracker website
It's on this page B1ll
https://www.lse.co.uk/ShareShortPositions.asp?shareprice=HE1&share=Helium-One
He wants in cheaper ! Bill (ignore)
Hi Candid, any chance you could share the source of your info please?
A new short position was opened a couple days ago, only 0.5%, but it makes you wonder why they opened this position? Don’t know if I missed it but has this been discussed on here yet?