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I doubt it’s more than 1-2% of his entire fund...
Agreed. I wonder which one of their funds/portfolio managers is sweeping these up
Ftse taking a proper tanking today - down over 2.25 %
NMC is still the only ftse 100 stock in blue here today and it’s trading on low volumes. Day traders look to be propping this up against a negative backdrop of rest of market, probably taking advantage of speculative call led by Barclays with NMC. Wouldn’t be surprised if it gradually retreats back this pm as day traders make their quick wins and nothing concrete come from call (if it takes place that is....)
I don’t know if these guys really understand well the concept of margin call and what’s a pledge. Unfortunately once a trigger is reached (contractual - numbers and written would be mentioned by bank on the TS) then the investor has either the opportunity to top up/restructure his debt at the bank’s discretion or the bank sells the shares. Obviously when they entered this financing agreement they didn’t expect the stock to go as low as 11 something. So this was an unfortunate event outside their control. And stating that they could have just sell at the market is also wrong and shows a deep misunderstanding of basic banking concepts. Hence despite that KGI is long, (similarly to me), I wouldn’t pay much attention to their statements. I read the previous ones and I didn’t find them that professional or enlightening.
I wonder how many Rns’s will be released this week. We’ve had 19 so far this month! Not the ones we wanted in some cases but hey ho hopefully a better week this week. Q
Krupa or one of the other IIs on call will probably put out a follow up article to give their latest opinion.
Blackrock gave their opinion last week through a portfolio updated, when they claimed they had exited NMC at end of Dec at a loss after directly asking question around cash and debt postion for MW report and not getting an acceptable response from the mgmt
to be honest, their ratings are meaningless... everyone knows they are the "house broker"
Assuming Barclays don’t dump their stock or downgrade their rating, that’ll be a good sign
how will it "be interesting to see" ... ? how are you going to see?
It sound like the is pro-actively led by Barclays who we know is major backer of NMC and presumably a major shareholder. So it is possibly only going to be a quick update as to the progress of the review and when the first finding around cash postion which is what they originally promised to share will be released.
Be interesting to see if the IIs on call directly ask question on cash position to get some early assurance or if NMC response is to wait for Feeh to complete review.
The only info we have re conference call is from Krupa, so it is not open to PIs. It is a bit difficult to know what NMC can say until Freeh reports something. But they might pop an RNS out. And the market always seems to front run news. It’s gone up this morning.
Prasanth Manghat is usually very active on twitter, but has been silent since 8 Dec...
yeah, probably only for the big dogs, it sucks but very usual process.
What time is it I wonder? Is it only with institutions?
Q
Im surprised an investor meeting or call with major shareholders is not declared on RNS?
This is interesting as this a follow-up from a a original report they did on Dec27 where they totally criticised NMC mgmt inlihtn MW allegations.
So they have had a change of heart and bought in as in their opinion even if some MW allegations were true its not enough to bankrupt company and share price is undervalued. Fair value for them is currently £20 and they have stake 1m shares stakes on this.
This maybe a short term punt for them...
KGI will listen closely what CEO of NMC Health has to say in conference call organized by Barclays on 27th of January 2020.
Call is today it seems
Krupa Global Investments (KGI) bought 1,000,000 shares of NMC Health (NMC), UAE-based hospital and health care provider and FTSE 100 company which has been under fire from short seller hedge fund Muddy Waters (MW).
KGI has been monitoring situation around NMC for quite some time since Muddy Waters published report which took down more than 70% of NMC value. KGI suggests that ‘facts’ in MW report might be relevant but not significant enough that NMC should go bankrupt or go out of the business based on this information. KGI has analysed report from Muddy Waters and NMC valuation closely and we believe that shares of NMC are deeply undervalued at these levels even in situation that everything mentioned in MW report is true which is highly unlikely. In our opinion, shares would be fairly valued around 2000 GBP per share relative to peers. NMC is dominant health care provider in UAE and their expansion plans into other Middle East countries will enhance their growth and bring valuation much higher when MW report crisis fades away.
Another reason for undervalued NMC shares is sale of significant stake by biggest shareholders. KGI claims event that happened in recent days when two biggest shareholders sold significant stake in NMC for price of 1200 GBP per share was intentional and not due to the reasons they mentioned. Shares of NMC were significantly higher just couple of weeks before the announced sale with trading volume exceeding average. These shareholders could sell their stakes at higher price in market, in our opinion, if the main motivation would be to get cash a pay down their debt in other ventures and businesses. KGI thinks that this kind of action from biggest shareholders might be intentional to secure lower price for certain time and open door for other potential investors. Process of sale takes several weeks and months to execute via advisors and banks, it’s not one day process which leave us suspicious as well.
We have seen this happening in August 2019 when MW started their campaign. Shares of NMC plummeted on the news, but few days later several Chinese investors including Fosun Group were interested in buying huge stake in company and shares rose back to the levels before MW report. KGI suggests that similar situation can occur now.
FTSE totally in red, only NMC blue. Something afoot
Website?
Not clever enough, but google Krupa and NMC, it’s there.
No idea when exactly, but look at the Krupa website, there is a section on nmc and it mentions it at the end of the one with their view on Freeh appointment
1400 HIT and yep I am out now... do feel this will stay BLUE... GLA
Details??