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Premier I would love to believe that you got this reply from emailing the CEO directly, but I don't.
don't take offence I don't really know you. It is a cool reply nevertheless
Shorting now is as stupid as buying when the SP was falling. Why short during the short squeeze? Wait for the SP to stabilise and a day to close negative and short then.
Someone who shorted at 9.5 is making 50% in a week that's what's going on. They will take their profits.
Then other shorters will have trailing stops so that they lock their profits as the sp goes down. Those SLs become buy orders.
All this can evovle in a short squeeze pushing the SP back to the 9s, then they will be start shorting again.
Sure but he valuated just the brand name of a bankrupt company 40% higher than the market cap of a bigger, healthier currently operating company.
Worse case scenario CVA is an option for Debenhams. It's not bankrupt yet and then it's priced as if next week it's going under. I had to go to a local debenhams to make sure it was stocked with inventory (it's fully stocked) and that employees wheren't preparing their cardboard boxes
I remember another retailer that went bankrupt. Their shelves where empty a year before that.
So they will sell more than the market cap? :)
I have to admit it's very worrying that there is no official statement from the company. No matter how much one believes in the company's management and turnaround plan, most shareholders will panic sell with this kind of daily SP change.
No official announcement does the same as validating the levels of the SP. The current market price is below administration, taking into account that house of Frazier with 1/3 of the sales of Debenhams was sold at almost twice the current mcap of debenhams, after administration. They are being a bit disrespectful to the shareholders. With liquidity this thin and market cap so low they can spend 5 mil for a buyback and push the price back to the 10s
I hope you are right but price action alone is not enough for a rebound. We need something to change the sentiment , Brexit deal, a company statement, more bod buys, rumors about a takeover bid etc.
Currently we are just at the mercy of the short sellers, waiting for them to be satisfied with their returns and start closing their positions.
Also share price, investors are dumping their shares, or funds pusihing with shorts has nothing to do with Debenhams solvency. They will go to administration if their sales drop further and they don't reduce their spending, which is what they are supposed to be doing.
Do you remember if the financial results of HMV before the collapse where positive? Did they have a profitable year of 33m, 150m EBITDA and 100m free cash flow like Debenhams does?
Debenham's stock is already priced in for bankruptcy, but the company isn't yet bankrupt.
Simply put, if the results they posted for FY SEP 18 is true, the company is solvent with good cashflow and 33m profit.
A solvent company won't go to administration at least any time soon. Short attackers with thin liquidity can push the share to next to zero but then what? The share price manipulated in that way, the panic selling and solvency are not related..
Short sellers will have to cover eventually because there is no point, no more profit to be made. They have to buy to cover, they will push the SP up.
I have around 25k in at 12p average price, worth around 10k now. I am holding till the end, the strategic plan the management presented was fine.
It's possible that there is information we don't know and company would go under soon, and for that reason Debenhams should issue a statement to calm things down.
I might add to the position below 5, not sure, but I won't sell to the end. I am ready to lose the investment.
Good luck to everyone
Probably shorts closing.
He isn't bidding because he doesn't want to buy it, or he only wants to buy it after administration.
Even if he does bid now the bod will probably reject anything below 20p, so it's pointless. Unless he's willing to pay around 250m for it, he won't bid. Also rumors around his bidding will immediately spike the price up requiring an even higher bid.
The fact that a thin liquidity short seller manipulated share is trading in a ridiculous value, doesn't mean there is enough liquidity for a takeover at this joke of a price.