George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
That’s the point though Theosus I didn’t make a gaff - if I sell now it’s a gaff. We’ll find out in 6 months or so if it was a gaff or not. I followed my strategy which has served me well for many years. What I have now learnt though is on some shares the price will keep getting beat down even on good news.
Thanks matlot - think I have a basic idea from the post on here yesterday about round robin trading / floats / algos etc.
I’ve also figured out that this is basically like holding your never like in the film the big short, in REVERSE!
sw1000 i agree - to be constantly destroyed on good news stinks to high heaven and i have never experienced this consistently on any share i have ever owned. successful MREL = down, results better than market expected = down, billionaire takes stake = down. city is c o r r u p t.
3 weeks ago our friend Gilinski bought a majority stake in FirstCaribbean bank valuing the company at pretty much bang on book value (US$1.2m).
https://www.antiguaobserver.com/cibc-to-sell-majority-stake-cibc-firstcaribbean-for-797-million/
Granted FirstCaribbean's cost income ratio is a lot lower (approx 30% vs 100% for Metro), although this is why Metro trades at such a discount (and FCA). You could argue that Metro has the potential significantly reduce costs which are historically high from their rapid growth phase, or you could argue the other way of course. My view is that it Metro can be profitable (hence why I bought in here) and if Gilinski only pays 50% book value for Metro I still make that nearly £5 a share.
Im sure he is hoping shorters stick around as they will be doing him a favour as he will be able to build a larger position for cheaper. Will have to close one day though which means bigger squeeze and their end game becomes riskier.
Short term it’s a difference of views. End game is a billionaire activist investor, his ability to raise capital, billionaire contacts and his determination to take control vs shorters who have already made a killing in this and have to buy back at some point. The way I see it is everyone wins.