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Guess they will address your points ShearClass (at least partially) in January and then wait for audited FY21 figures. But yes you are right: no reason to rise significantly on this news alone. Shorting is a difficult business and as far as I know, also professionals mess it up on a regular basis. Curious how this will work out - shorters here operating in difficult environment in my opinion: i) company is operating in a growth market ii) you may have a big aquirer who is willing to buy (lot of companies sitting on piles of cash)
We made Linzer Augen this weekend with peach and berry jam: https://de.wikipedia.org/wiki/Linzer_Auge
I hope that no "under water" shareholder of AWE has to skip the cookies this holiday season!
I may not be happy with the IR performance of the company (as another post here says, the products offered and their usability etc. could be better explained to the market/investors) but in this case we have a planned action as stated in the IPO prospectus and I see no need for an explanation what that means to e.g. the capital structure. This we can do on our own... no dodgy action for me.
Comment was always (every analyst piece I discovered) that this is an expensive IPO. Conclusion of the FT article as I remember it that the company has to grow up and start selling to market participants outside their connected familiy companies. The bashing of shortes is not necessary here. I see a valid point in their actions.
I agree Koolhead - for me, shorts are an non-eligible trading tool. Since I have an mid/long-term approach and wasn't it for the massive shorter influence on the stock, I would not track the stock with this daily coverage
Would not dismiss the approach:
a) you see the growing short interest open up within the professionals => FT article is published => jump on the bandwagon asap and profit of the falling price
b) as the fog of war clears, determine if the company is a long term bet for you
c) therefore realize the profit from your put option /CFD and be happy with this opportunity
d) as under point c) and additionally open up your long term investment in AWE
To be fair Barcap: you have to add that a retail short strategy is one of the most riskiest things to do around securities trading; how're deciding which one to short? looking out for professionals opening short interest like in AWE? Just think of the Tesla die hard shorters... pffff... tough!
I did my napkin calculation for the Tiger short:
- They lended a total of 7.979.591 shs
- They bought the shs at an average of 2,292758333 GBP (assuming the daily closing price)
Therefore - not calculation for fees they have to pay to the broker(s) - the will be able to realise the following "profit curve":
@1,9 21% Gewinn
@1,8 27% Gewinn
@1,7 35% Gewinn
@1,6 43% Gewinn
@1,5 53% Gewinn
PS: I'm a Kraut (from Austria) therefore profit = Gewinn
I am happy if everybody is keeping it "friendly & polite". The older I get, the more I value different opinions. For me every serious and valuable comment counts. Long / short or any other strategy I cannot dream of... I dont mind.
Ok thanks for the insight. I'm - like most of us here - curious to see the shorters doing their work and to see the upcoming company results / clarifications. At this point I appreciate the short seller method as a tool to make (more ore less guaranteed) short time profit with securities lending and get a long term stake at a reasonalbe price at the same time.
I would guess you're not running an in depth cashflow sheet on AWE based on company exertise, growth prospects and available market circumstancesa. I guess your say 120p because shorties have some profit expectation? Tiger bought in around 200p and 20-50% short time profit is desirable? Every company has issues that point does not qualify at all for good / bad share price performance (up to a certain point of the severetiy of the issue). Its the grand expectation of universal things. But seriously - beside the bespoke tealeaves (btw I like milky olong and green tea) - how you arrived at the 120p?
I guess - lacking technical in depth knowlege - long term ok, short term a tough short seller capabilities lesson. New announcement:
https://www.awaveip.com/en/news-views/samsung-and-alphawave-ip-announce-acceleration-of-deep-partnership-with-flagship-global-hyperscaler-design-win-at-4nm/