Recovery29 May 2017 09:25
Is underway here and I for one will be adding to my holding come tomorrow morning. The simple fact is that it was oversold and now a bounce to what is probably par value - so £1.50 to £1.65. Earnings if they are flat still show a sizeable profit. I go to the Leadenhall branch regularly on a Friday and you cannot move in there it is so busy. I guess the key is location and market and with that they may just off opening any more branches until the new branches are working to maximise profits.
The other point I would make, which I have before is the fact that there are only 50m shares and of that circa 70% is held by institutions. This therefore means that both a fall and climb in the sp could be pretty violent. We saw a 50% fall taking the price from last Thursday, well a reversal could see this add 50p in no time at all.
Those holders that are short (and lets face it a number were/ are) well just try and buy the stock back from the MM come Tuesday and you will witness one hell of squeeze. I've seen it before with other stocks many a time.