RE: ITV Buyback Analysis ( 15.6% complete )27 May 2024 11:55
Carrington
It should be clear to everyone that we are talking about reported short positions exceeding 0.5%. Likewise, the current reported state of short positions of 1.2% is different from the actual one, because it does not take into account the positions of small players.
From my perspective, Qube disappeared from the list of large short positions in ITV shares and this happened after several attempts to reopen these positions. The conclusion is obvious - either they bought as many shares as they intended if they while playing on ITV shares, or they were afraid of the return of buyback, which has aggressively purchased over 2 million shares each over the last two sessions. In the second case, maintaining such a tendency to buyback very quickly dries up the ITV stock market (where it accounts for 20-30% of the share turnover during the session) and is a bucket of cold water for all those playing shorts and aware of the cash reserves of the party purchasing the company's shares.
In addition, there is the issue of returning to the stock market in the form of reinvestment of at least part of the funds from the dividend paid by ITV. And here, assuming at least a minimum reinvestment of 10%, we are talking about an amount of approximately £13 million, i.e. additional demand for approximately 17 million shares (and only if the 10% of the dividend wants to return to the market). Additionally, let us remember about the probable return of funds from the unsuccessful sale of ITV shares to the stock market in anticipation of a deeper correction of the share price from the last month. So I'll say it again. I think that this week on the ITV share market will be interesting and definitely more interesting, due to Qube limiting shorts and the return of buyback. And breaking the 80p mark on ITV shares is becoming very likely.
Sign In
Follow the stocks
