Fusionex Share Discussion Threads

[j777j] 22/6/2017 14:54

I am trying to close my short.whiningfroth told me this would fall to zero and I am heaviky underwater.Can anyone help?

[zcaprd7] 22/6/2017 11:35

Indeed. I'm a fan of ved, but put off by argawhal's antics...

[cumnor] 22/6/2017 08:24

True zcaprd7, which makes me wonder why anyone would be interested in Saudi Aramco and of late the likes of Ved which on the surface seems remarkably cheap. I don't think Teh will have done much for similar newcomers from Asia and will certainly have ensured investors demand a bigger chunk of new lists for less money.

[zcaprd7] 22/6/2017 08:12

Indeed. In fact any situation with a large founding invester I suppose is a risk?

[zcaprd7] 22/6/2017 07:58

Not if it's a bet and has been settled. A "proper" short is different though...

[mesquida] 21/6/2017 22:38

Highasakite, it is a shame that you cannot debate this issue sensibly, as I think that we all would like to learn more about this sort of situation, and indeeed it would seem that there is a marked degree of uncertainity about just how the spreading betting companies will proceed, given that this is not a typical delisting. I certainly would welcome any guidance that you can provide without your simply parroting what TW has said or resorting to vulgar language. Do you at least acknowledge that one day this company might resurface on another Exchange, possibly at a much higher price than 62p, and if that proved to be the case would you accept that a shorter will be found to be liable even after several years?

[greedfear] 21/6/2017 21:44

I very much would like to learn from these kinds of extraordinary situations. Could folks that have long or short spreadbet positions in FXI report how spreadbetters deal with this situation? Cheers!

[greedfear] 21/6/2017 21:39

Short positions that are not closed will in theory have an unlimited risk.

[greedfear] 21/6/2017 21:29

Mesquida they'll probably not pay out, but have terms like IG:

"(b) If you have a Down Bet, the Closing Level of the Bet will be zero and on
closing we will open a corresponding proceeds line on your account so that if
the company makes a distribution to shareholders, an amount equaling the
distribution will be debited to your account. We reserve the right to require
you to maintain Margin on this proceeds line, which could for the avoidance of
doubt be as much as the difference between the Suspension price and zero."

So probably only the difference between the short price and the suspension price (62p?) will be paid out, the difference between the suspension price 62p(?) and 0p will have to be maintained as margin.

[muffster] 21/6/2017 21:29

That is untrue. Bet closed, walk away, no recourse.

[mesquida] 21/6/2017 21:14

So the shorters might be paid out on the basis of the shares having nil valué at the moment, but if in the future that situation should change ( for instance the shares get requoted some years hence on NASDAQ for example ) then the shorters will be líable for any increase over and above nil value. Given that there is clearly a long term game plan here ( why else would the respected Herald I T have been buying in the market pre suspension ) then I suspect that the shorters might still get burnt quite badly.

But just how do the spreading betting boys control the risk here. They pay you out now, and then at some future date, perhaps many years away, they contact you and advise you that you now owe them thousands. I could imagine that many bad debts might arise from this situation in the future, assuming of course that the Company does survive, and ultimately prosper. And whatever Tom Winniwhatsit thinks,I suspect that it will survive. Which brings me to one final point - just how is Tom Winniwhatsit allowed to peddle such investment advice when it us quite obvious that he has done very little research. Surely there should be some control over this sort of advice, but then again why do so many people pay for it?!

[chadders] 21/6/2017 20:43

Those shorters who didn't close yesterday are in for a nasty shock. Greedfear says it very succinctly, you cannot short a stock - risk free - that announces an intention to delist. Market chaos would result. I don't know if the same applied for spread betting. Shorts will have to negotiate a buy back price to close their positions so good luck with that one.

Has TW said anymore about the matter? He was definitely blind sided when the share started to rally. If I remember correctly he put it down to Peel Hunt closing their short position. Why did they close if they could hang on for 0p?

You shorters with open positions need to engage your brains methinks.

[greedfear] 21/6/2017 20:29

And you my friend must be the pride of the unicellular.

[highasakite] 21/6/2017 20:23

greedfear

you are a deluded tit.

[greedfear] 21/6/2017 20:15

For starters, the concept of short selling is fundamentally wrong. Shorters can only make money when others lose. Shorters sell something that isn't theirs to begin with.

How would you feel if your neighbour sold YOUR car because HE doesn't like it? Would you still think of him as a perfectly nice bloke then? That's what happening on the stock market every day: people selling shares they don't have (often without consent from the owners) with the purpose of making money by others losing money.

I don't like the species.

[acliff] 21/6/2017 19:18

greed
why do you hate shorters?
it is only someone, probably a perfectly nice bloke like me, who has the opposite view on a stock to you.
Every time you buy something someone else sells it to you, so they also have the opposite view.
In fact shorters can help you because at some point they have to buy back and that could well be when you want to sell and so do all your other long only friends. At that time if there are no shorters to close/buy you cant sell (at a remotely decent price).

[highasakite] 21/6/2017 18:51

you said u didn't care you tit. but you keep coming back ? LOL

[greedfear] 21/6/2017 17:32

That's what you think. Better read the fine print. Does it really make sense to you that one could short -risk free- any share that announced a delisting? Suppose you do...

[highasakite] 21/6/2017 17:24

why would I feel uncomfortable ?

Shorted at 72p. will close at 0p according to IG Index.


laughing all the way to the bank fella