RE: JO13 Nov 2024 19:16
A Hi🙂 to you AimMaster2018 and everyone else that's invested or looking to invest in Capita.
GLG Partners LP last time they've reduced was to 0.48% on 3rd Jul 2024. Therefore I'll assume they were also open with a short of 0.48% and increased it as of lately to 0.51% as of the 12th November 2024.
Today shorting activity was mostly seen around 15:30 and 15:50pm with an overall amount of 1,200,000 shares made of many small trades with the 17.30p share price as the price to strike out during the late afternoon trading day or b4pm.
I don't see anything to worry with their resurfaced short plus a little more of fresh money thrown at it with the assumption they increased that 'sleeping' 0.48% never actually closed short from when the cpi would had been under 14p.
So, perhaps they're wanting one final go at it before they finally pack their bags and go for good without a return. The position that concerns me the most is actually Qube Research as they're currently hacking away at the Close Brothers and if Cpi is lucky enough, they might eventually Close their cpi position and be happy with their big hits like Close Brothers and other stocks that they're currently shorting with great success but not much happening with cpi as so low in its share price and imho they'll get pennies back and even risk being burned if some great news get published by Capita and catches them out with the pants 👖 😀 with cpi. But nevertheless, you just don't know their true intentions with cpi.
Remember that a shorter interest rate to borrow stock is very low and with cpi currently showing from 1.9% at plus 18p and 1.39% if under 17.75p. So, the lenders interest rate is higher if the stock is borrowered from a higher share price level as I guess there's more money to make and a bigger drop to achieve. Around the 3rd July, the Glc shorters would have probably had to pay around the 1.1% to lenders as that short 0.48% was cheap to lend as it was under 14p.
Is it safe to invest currently in cpi?
Yes, but don't over the odds or you would be bounced around by those two shorts playing games tossing around a few pennies up one day and down the other day.
Take Care and Good Luck with your next investment move.😍
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