shorting

0.1% shorting notification adopted by FCA – mirrors EU

On 6 January 2021, the Treasury published the Short Selling (Notification Thresholds) Regulations 2021 No. 5  to amend the notification threshold under Article 5(2) of the Short Selling Regulation from 0.2% to 0.1% of the issued share capital of an issuer. This change will come into force on 1 February 2021. This means that from 1 February 2021 the notification threshold for issued share capital of a company that has shares admitted to trading on a UK trading venue (UK Regulated Market and UK ...

Burford – Illegal Market Manipulation?

Burford Capital (BUR) have issued an announcement that makes a number of allegations about the events surrounding the recent shorting attack on the company involving Muddy Waters. It includes: Spoofing and layering to move the share price, e.g. putting in numerous share sales on the order book and cancelling them before they can be filled. That includes numerous such transactions just before Muddy Waters issued a tweet giving Burford as the target, and as that tweet was delayed only Muddy Waters ...

Shorting Shares – An Example of Motives

One of the most peculiar stories in the last week was the revelation that the attack on the Borussia Dortmund football team's bus was not a terrorist attack after all. According to German police it was done by an individual investor who hoped to profit by shorting the shares. By killing or injuring their star players, he expected their publicly quoted share price to fall sharply. Indeed the share price did fall by 3% but as the injuries suffered were relatively minor ...

Blogging and Shorting – Globo and Valeant

An organisation called Quintessential Capital Management (QCM) published a report on the 22nd October on Globo. The next morning the shares were suspended at the request of the company so as to enable them to provide a detailed response but they immediately refuted all the allegations in the report. QCM acknowledged that they are active in short selling and have taken a short position in Globo. They also have links to Simon Cawkwell who was also involved in a similar attack on ...

Quindell – and how to avoid the shorters

Quindell, a company operating in the insurance sector, came under attack yesterday by Gotham City Research LLC, an investment analysis firm. Quindell's shares ended down on the day by 39% and were down more than 50% at one point. Gotham City make numerous allegations in a 74-page document which is available from their web site. Without a lot more knowledge of this company and a detailed study of these allegations, it is impossible to comment on the substance of them, but some ...
Skip to toolbar