The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I have the feeling shorters know there is a dilution on the cards having insider knowledge since this began sliding (all it takes is the banker to tell a hedge fund 'that petrofac is getting no more loans'. Call it illegal but this is how financial markets operate. Expecting an FCA investigation into this and many other cases of this happening is hopeful. The FCA's primary purpose is to act as a deterrent, they don't have the internal resources to investigate every case of collusion, insider trading etc. To top everything that's happening - no one from management is buying so they must know something is up.
@Orangemoon you are absolutely right! One more RNS. There is a lot happening in the energy sector and Petrofac will have learnt a heap about taking on or pricing incorrectly contracts. PFC are a big player in this game.
@OrangeMoon why would they play the dumb card. With a huge backlog refinancing will not be an issue. Creditors will leverage loans on the forward contracts and more importantly cash ultimately. Helikon got very greedy and sadly made some lose sleep. Even i thought they had some inside knowledge that retail was not aware of.
They were playing short up until the 20 Dec. Lol. They loved a short until they got caught out! Now they can't wiggle out of this mess. Everyone is on holiday. PFC Management kept the RNS well wrapped - well done to them.
Post Christmas shorters haven't worked out an exit plan as they panic on a beach in Bali or somewhere else. The New Year will see this recover to 70p by the end of January. Keep buying people!!
This is what i can make of it. They are panicking and try all sorts of manipulation to get themselves out of this mess. Helikon called it badly they have no option but to increase their position hoping to dupe more LTH's.