RE: Bears23 May 2018 00:47
There was a bear squeeze on, as the SP gets higher the losses on the borrowed shares increases significantly until they've no option really to cut and run taking a big hit or sweat it out. As the shorts decrease the bear squeeze eases as there's less demand for the shares hence my comments earlier on. I saw a similar pattern following the Morrisons deal 5 years ago, huge increase in the SP before it retraced by 50%, not saying it will do that again by any means as the Kroger deal was a game changer for sure plus there may be more deals in the pipeline from recent comments plus the entry into the FTSE100 will mean mandatory purchases of the Ocado shares by the funds creating a further demand on the shares. A decision will made on Wednesday 30th May as to whether or not Ocado qualify for an entry into the top 100, I'm hoping it will be an automatic entry based on today's price. If successful then Ocado will enter the top flight on Monday 18th June which will be a landmark event with G4S maybe dropping out
Ocado are increasingly looking like one of the top UK tech companies right now if not the best !