The facts....again1 Oct 2019 08:51
As I have previously stated - Nobody on this board mentioned Takeover, it was published in the FT and few other media outlets and this was posted on the forums. There was not any reaction in the SP until we got that holdings RNS yesterday. It told us that over 3% of the companies shares have been bought up by a US fund. Adding to the other 5%+ the previous week.
Whilst some have been loaning stock out to short sellers and PI's perhaps panicking and selling these funds have been taking the stock out of circulation. Now the funds that loaned out the stock don't care they pick up a loan fee, but the short sellers have to buy the stock back. Now with more off the market place they pay a premium. Market Makers are aware of this and any stock they hold they will apply a premium. Economics 101 - I did put up a post on Friday about what Porsche did for the VW share price back in 2008. The US billionaires behind Metro Bank may have had a word with some of their friends stateside - the share price coupled with the favourable exchange rates has lead to our shares looking really attractive. With all that in play you have a recipe for the sp to now overshoot where we were last Monday morning, which was around £3.09.
A number of investors, me included, emailed Investor Relations last week and the response received was re-assuring, but measured. It lead me to believe that a further update would be presented, but perhaps next week we will get a few more Holdings RNS' and then we'll see where the SP goes.
4 weeks from now and we'll get the scheduled corporate update and provided cash inflows have continued to increase and outflows negated then the share price could go a hell of a lot higher - not putting a number on it. At this point you can go back to the market with a little more clarity, and sell bonds from a position of strength and perhaps have a situation where they are oversubscribed!
Now I am sure there will be bumps along the way (LTH's had a car crash on Wed and Thurs this week), but the long term holders here are the ones that will reap the rewards, not the ones saying it's going up 10p and then when they sell they then say it's going down 20p - well you know what I mean and who I'm referring to.
Next week could well be a car crash for those short on the stock - it's Karma, buts rest assured those Market Makers will always make money along the way.
Long and Strong!