Member Info for PDS2023

Where is this analysis by this stock picker, Simon Thompson? would be great to take a read.

Wider markets have been very volatile in recent days.

Hi JeremyP, you just said no volume or selling on L2, so i was just replying to say that if there is volume there will be a bid and if there isn't volume the b/o will need to move higher again to get flows.

Either way this bid/offer wont last.

Given where this has opened, can't imagine shorts not trying to use any meaningful volume to unwind. Sellers are just giving them an out here.

Indeed JeremyP, times are getting very interesting. At firm level (GSA have c 2.25bn GBP under management) this short in Boohoo is now costing them c28.7mm GBP ~ 1.27% of firmwide assets (WA entry @ 31.14 with 10mm shares shorted). Making the assumption that -5% is usually when losing positions have the ripcord pulled, they have until 42.4p to get out of this before their risk department probably forces them to do it. Again, super interesting times.

Shorts using higher volume at those prices to unwind?

Marshall Wace started to reduce last week, albeit 0.01% but the peak short demand may well be in. They have the highest average entry price in the 112p zone, so either they are seeing the technical picture become less clear and/or year end profit crystallization is driving this.

Unless we have another financial crisis this won't happen in the UK. Hedge fund community is very large, banning shorts will just mean they head to other jurisdictions and the London financial centre loses out on a huge amount of financial and intellectual capital. Also, why is shorting so frowned up, they have been more correct than not over the last couple of years. The reality is if the shorts had lost money, nobody would want them banned, so it's not a fair argument, at least IMHO.

The BBC have basically found evidence that businesses will try and reduce their costs to maximize profits by pressuring suppliers, making staff work overtime, penalising late input arrivals and squeezing as legally as possible every cost saving angle as possible. If it was up to Panorama the entire capitalist world would be shut down. Absolutely useless piece of journalism and not even related to the original problems in 2020 which definitely needed to be changed given their illegality. BBC showing again how backwards they have gone in recent years.

Based on latest data on the FCA website (3rd Nov), no Boohoo shorts closed yesterday. Price is moving higher due to both real demand and short unwinds, which to me is a sign that support is stronger here. Steady price moves is what we want to see.

What is this in reference to CWWX?

Seeing much on the L2 screen?

Smaller short trendline from May23 to Aug23 peaks acting as resistance at 34.25, needs to push through that first to start looking at the 40a target.

100MA @ 33.70, if we can capture that, suspect we start to form a support level there. Also, the slope of the 100MA has turned positive for the first time since the downtrend began and similar to Jan23' where we saw a sustained move into the 60a. Target for now is still the 40 zone.

Eleva Capital WA entry is actually at 37.11, which makes for an even more interesting dual. Systematic is short at WA entry of 41.3 with a 0.47% short (c6mm shares).

GSA still need to cover 10mm to unwind their short (WA entry 31.15 based on some lag assumptions and first in first out process). I don't see how they are going to do that without moving the price materially higher. If we assume a point per 10bps of covering, we are then close to 40p. And here in lies the domino impact, Eleva Capital have a 1.7% short (c22mm shares) @ c41.3 WA entry. Once we start to budge up against the 40p zone, I suspect you will start to see shorts up against each other for the first time in a while. Now the timing of this is up in the air and it won't be a straight line (although with results, sentiment and guidance all out of the way, the technical picture will take precedent) but having worked at a HF in the past, year end is the time to crystallize gains for bonus season, and some of these shorts in the 40-50p zone will likely do just that before 31st Dec. Just my take.

I don't really know why people talk like that, most people here are just curious and the board is basically talking out loud so to speak. I have definitely fallen foul of taking things personally but overall I think being respectful and sticking to details is the only helpful content.

Solid daily gains, with consolidation is a robust way to see price move higher. The faster it goes up the more air gaps there are behind for it to fall back into.

Will be interesting to see if any shorts closed yesterday, will hear at close today. If there hasn't been much by way of short unwinds, this move is actually even more powerful because demand is coming from investors. Either way happy to see the market finally move in line with supply/demand dynamics.