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Kier

Practical discussions about equity High-Yield Portfolios (HYP) for income
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Tight HYP discussions only please - OT please discuss in strategies
monabri
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Kier

#166730

Postby monabri » September 16th, 2018, 3:30 pm

I see that the hedge fund managers are targeting Kier now! They've steadily increased their shorting to over 10% ( visible) from zero since March 18. Are they deliberately trying to " wobble" Kier by trying to make comparisons to Carillion or have they genuinely foreseen issues?

ZipserSir
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Re: Kier

#166772

Postby ZipserSir » September 16th, 2018, 7:33 pm

According to the original fool the wise recommend it as a buy. The company says it is a different beast to Carillion. I wonder whether shorting is a low cost bet for hedge funds? Does it cost them much to short, and the reward should the bet come off considerably out-weigh the cost?

monabri
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Re: Kier

#166781

Postby monabri » September 16th, 2018, 8:07 pm

Funny how these news items come out a few days before a trading announcement .

I believe that the cost of shorting is relatively cheap ..except when divis need to be paid.

Of course, they don't always get it right ( Ocado is a recent example). It does seem sometimes that they take a scatter gun approach. If they were all knowing, then they would have bet on Provident or Petrofac BEFOREHAND.

pyad
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Re: Kier

#166893

Postby pyad » September 17th, 2018, 11:35 am

monabri wrote:Funny how these news items come out a few days before a trading announcement .

I believe that the cost of shorting is relatively cheap ..except when divis need to be paid.

Of course, they don't always get it right ( Ocado is a recent example). It does seem sometimes that they take a scatter gun approach. If they were all knowing, then they would have bet on Provident or Petrofac BEFOREHAND.


Well if they don't always get it right, which is a correct comment, why do you set such store by shorting volumes for HYP purposes?

monabri
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Re: Kier

#166896

Postby monabri » September 17th, 2018, 11:46 am

My (original) question was whether the shorting is based on a genuine concern?


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