Member Info for MarkBellUK

So now it gets very interesting, as you would expect short positions to reduce, meaning heavy buying to replace borrowed shares and the company buybacks pending we have sustained heavy buying whilst the sellers will have dried up and thats without private buyers

580 in pre market auction...overtime given not yet open

Tom its the short providers hedging and JP Morgain reducing its holding by a percent as well....hopefully start to pick back up this week

Its recovering well today from 507 low, the order book is heavily BUY weighted, but this thing flips more than a freshly caught fish

Once the shorts start to close up and the buybacks kick in it should give momentum regardless of mediocre results

PC My confusion with a DPA is that as a business I wouldnt have thought you would spend $70m is it? on a defence team only to agree a say a $200m DPA? Unless of course you thought you couldnt get a DPA without a defence team, but then defence is 40% cost of the DPA..also I wouldnt have thought, again as a business, you would have set up such strong opposition and dug in on the grounds of innocence, spend $70m on a defence team then go for a DPA...even thought for the business, regardless of guilt, the flipping DPA might be / have been the best option...perverse justice caused by drawing out investigations and not charging anyone!

lol i will put the beer down 0.14% of 113,289,768 total shares in circulation = 158,605 borrowed

its still quite a few days of constant small sells..maybe cleared now though?

Hi mate

"just don't understand sorters of any shares, WHY don't they let the share price go up to say 800 then short it ?"

Because at that point (800) the SP would be in strong upward momentum (or would have been if plateau) so news / updates etc would all be sorted. Shorters play /prey on bad news or more so fear of bad news / fear of the unknown. So even though I believe we are through the worst quarter for this sector, as we've not had an update, there is still a great fear of the unknown, so the constant small selling pressure panics people even more.

Nevertheless I totally understand and agree with your point that shorting at these price levels, especially considering massive buybacks, is very risky (they very often get it wrong btw). However they have just up'd the short 0.14% which is 0.14 x 113,289,768 total shares in circulation = 15,860,567 borrowed shares to sell (hedged by the CFD provider). That is alot of selling pressure..however once cleared it reverses and is a lot of buying pressure, at some point, to replace back the borrowed shares!

But alto the SFO has prosecuted four employees and that continues, which is what Guardian said. The article is saying that the SFO has dropped further investigations? So the implication (and speculative hope) with PFC is that the SFO will also drop further investigations and draw a line at where it is at now (i.e Lupkin)

" Plus500 is a SETS based stock and therefore not controlled by the MMs"

Actually at this moment in time this stock is controlled by short funds, currently Rubric been the worst culprit, who works with the market markets, as their provider off loads relentless batches of borrowed stock via the SETS system

That wouldnt have helped yesterday, probably why we hit -7.6% whats surprising is it sprang back up to finish -3.55% recovering 4%..crazy percents Vs volume vs market cap

Yes mate, personally I think they are hanging on now to both Unaoil and PFC but their grip is slipping!!

You have Rubric capital to thank! Watch their short position carefully. They just caused another 15,860,567 to be borrowed and sold...hence the constant selling pressure since the 25th. The good news is these shares will have to be bought back

PC The bottom line is you were right about the shorters causing the drop! Here is how...They will be short via a contract,a CFD, given by a provider. At that point the CFD provider hedges against the short by going short themselves. How? By borrowing stock and SELLING it. They are then liquid but owe the stock back (looking for a price drop to buyback cheaper). This selling, especially the algo constant small sells, causes severe drops in price (0.33% short increase 25th & 26th June which is a 37,385,623 shares!)

The good news is despite this selling, due to rumour (and pending SFO closure) we are still about 9% up. Meaning those who increased their short at that price , will be well under water (although impossible to know the overall average short price). The bad news is we dont know how many of those 0.33% borrowed shares are still to sell. BUT the better news is at some point the borrowed shares will need to be bought back and when/ IF you combine this with SFO closure this will given serious lift off

Bedtime read will get you into it:-

https://www.contracts-for-difference.com/Hedging-cfd-trades.html

Ignore that im knackered..thats for a client who goes long via a CFD, the CFD provider goes short CFD but long in the market to hedge!

PC I think it would work in reverse

When Polar increase their short it will normally be via CFD. The institution /broker /bank providing the CFD will normally hedge and go long, therefore increasing buying pressure

So when shorts close the CFD provider usually in turn closes their long position causing the sell off

No all CFD provider hedge (PLUS500 doesnt) but I think all others do

Look it up mate

Irene I used to work with the funds and actuaries but you know best!

Irene I used to work with the funds and actuaries but you know best!

Impressive come back today, straight into the 23.6% Fibonacci range as well