The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Of course, if at 2pm MTRO magically pops off and rises to book value and beyond, I'll sell up, liquidate my ISA, and move to Mustique. DREAM SCENARIO.
I agree that there'll probably be a reduction in shorts from this. But no going to the moon just yet. Give it a few months and it will happen naturally. Patience is key with MTRO. Just keep buying at a decent price. You'll thank yourself by EOY.
I'd give my best ball for MTRO to get GME'd - it would make me a very wealthy man. But it's not going to happen. A big part of GME was related to options trading. Don't think there are many of us buying elaborate MTRO derivatives.
Secondly, MTRO only has 4.84% in declared shorts. Of course, there'll be more with those under 0.5% who don't need to declare - so lets say max 10-15%. GME had 140%, hence why it was so easy to squeeze.
Finally, VOLUME! MTRO and most European stocks can't compare in terms of volume to the US stocks.
Metro is very conservative with defaults. Probably one of the most conservative U.K. banks. They have already planned for writeoffs far larger than will actually appear, hence I’m expecting a nice surprise come February’s results.