Share tips thread
Discussion
twinturboz said:
Bloody hard to come by. Borrow rate is about 100-120% some where around $120 a night to hold short 1000 shares. I'm with Interactive brokers which currently is also showing nothing available to short. I guess you could try spread betting or cfd's.
Edit did you mean in general or just gpro?
If you're paying that much to go short, why not just spread bet?Edit did you mean in general or just gpro?
Shaoxter said:
If you're paying that much to go short, why not just spread bet?
Usually nowhere near that sort of price on other stocks just gpro seems to be hard to borrow at the moment.To be perfectly honest not familiar with spread betting charges how much does it cost to hold a position overnight? Plus do I then incur fx charges etc probably works out the same no
Yeah so in the case of gpro your right cheaper to spread bet. IG say they charge libor + 2.5% comparing that to say holding short Apple the current charges on IB are 0.25% for Apple.
Edited by twinturboz on Tuesday 30th September 16:40
twinturboz said:
Shaoxter said:
If you're paying that much to go short, why not just spread bet?
Usually nowhere near that sort of price on other stocks just gpro seems to be hard to borrow at the moment.To be perfectly honest not familiar with spread betting charges how much does it cost to hold a position overnight? Plus do I then incur fx charges etc probably works out the same no?
As an example right now I see GPRO at 9196/9217 for spot and 9180/9258 for Dec-14 future. So if you wanted to short until Dec you pay an extra 16 points.
No FX risk or fees on IG because everything is in £ per point.
gaz1234 said:
tesco 186 seems tempting
Yes it does but based of the profits they're reporting the price isn't cheap even now.They really need to turn it all around to get any good momentum in the share price.
I've thought for a few years that Tesco stores have gone a bit 'grotty'. Lack of investment. The in store cafés are dire. The petrol stations are rusty and dirty.
A few years back they were 100% customer focused. Remember the sad fish adverts? They became complacent.
Not a business I'd feel confident investing in.
Oakey said:
Odd, because our local Tesco is miles ahead of Asda. It's clean and bright and modern looking whereas the Asda is dark and dank and feels more like a B&M Bargains or Cash and Carry. This seems to be a design choice on the part of Asda because it wasn't always like that.
Most places are better than Asda..Tesco is being squeezed from above and below. Waitrose and Sainsbury from above and Lidl and Aldi from below. Add in some odd accounting practices and they're in trouble. The thing is I really like their petrol discounts at the moment
but I guess even that isn't enough to persuade the masses to come back.Not staying Tesco will do the same but Carrefour back in 2011 is an interesting case study.
They were coming under pressue from discount retailler Leclerc. They announced a series of profit warnings before eventually sacking the CEO and getting a new one in.
The new CEO more or less went back to basics, cut prices and pulled out of the overseas markets. Cut a long story short a few years later and the stock price is looking much better. With hindsight it was a buying opportunity I guess well find out in the coming years if this turns out to be a buying opportunity in Tesco or not.
They were coming under pressue from discount retailler Leclerc. They announced a series of profit warnings before eventually sacking the CEO and getting a new one in.
The new CEO more or less went back to basics, cut prices and pulled out of the overseas markets. Cut a long story short a few years later and the stock price is looking much better. With hindsight it was a buying opportunity I guess well find out in the coming years if this turns out to be a buying opportunity in Tesco or not.
twinturboz said:
Not staying Tesco will do the same but Carrefour back in 2011 is an interesting case study.
They were coming under pressue from discount retailler Leclerc. They announced a series of profit warnings before eventually sacking the CEO and getting a new one in.
The new CEO more or less went back to basics, cut prices and pulled out of the overseas markets. Cut a long story short a few years later and the stock price is looking much better. With hindsight it was a buying opportunity I guess well find out in the coming years if this turns out to be a buying opportunity in Tesco or not.
I wonder if we have had all the bad news yet, could the investigations into the £250 million error produce more shocks?They were coming under pressue from discount retailler Leclerc. They announced a series of profit warnings before eventually sacking the CEO and getting a new one in.
The new CEO more or less went back to basics, cut prices and pulled out of the overseas markets. Cut a long story short a few years later and the stock price is looking much better. With hindsight it was a buying opportunity I guess well find out in the coming years if this turns out to be a buying opportunity in Tesco or not.
Who knows, the chart definately isn't showing signs of a bottom yet. It's going to come down to sentiment IMO. Will the next peice of bad news be worse than expected or be a bit better than worse.
Either way not the most sound thesis to take a position and I'm saying that with a long position in the stock.
Most who want out the stock are probably already out and not sticking around, those that are short I think would be either holding a short position from higher up or thinking of closing up soonish, I'm not convinced people would be initiating new short positions down here. At some point if it gets low enough it will attract value investors.
Either way not the most sound thesis to take a position and I'm saying that with a long position in the stock.
Most who want out the stock are probably already out and not sticking around, those that are short I think would be either holding a short position from higher up or thinking of closing up soonish, I'm not convinced people would be initiating new short positions down here. At some point if it gets low enough it will attract value investors.
Edited by twinturboz on Tuesday 30th September 20:53
My question would be not how low it'll go, but what the chart will look like at the turning point. I suspect that with something like Tesco, money is quicker to get out than to jump back in, thus it won't make a particularly quick or sharp resurgence in comparison to the time it took to fall. If that's right, then it shouldn't be too hard to wait and pick the approximate bottom using a month-level chart.
I could be talking out of my arse, of course. I could also be surprised by a positive RNS that made it immediately jump up, but I think the chances of that are slim unless the next trading update defies expectations.
I could be talking out of my arse, of course. I could also be surprised by a positive RNS that made it immediately jump up, but I think the chances of that are slim unless the next trading update defies expectations.
greygoose said:
I wonder if we have had all the bad news yet, could the investigations into the £250 million error produce more shocks?
AIUI the dodgy accounting practices had been highlighted a while ago, to the previous CEO, but were ignored. The problems weren't hidden as such but just ignored, until the new CEO started.That being the case, my gut feeling is that there aren't any more accounting issues to come out of the woodwork. The £250m is probably a fairly accurate estimate (or, if anything, on the high side). If I was the CEO I'd go with the kitchen sink approach, get all the bad news out there asap, and then effectively start rebuilding from a new baseline.
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