Fred Prior
03 Nov 2016
The intentions of an SBP SBP is a spread bet provider,They work in cahoots with the big guns and MM, if and when a client opens a new position of any decent size, it is in the interest of the SBP to get that position offside asap, be it up or down, of course the stock in question has to have more open spread bets in a given direction that is the opposite to the client with the big position or their efforts would be in vain.. For example I would assume that most normal investor/traders would have assumed that after the huge buys from insiders at Hikma that the stock could surely not move down on no bad news, or not on any news come to think of it, hence there must have been plenty of people with small positions , or very few people with large positions that opened up long positions with an SBP in the hope that the stock would carry on rising, the trouble is that when you open up a spread bet, its just that, a bet, so you are not actually adding to the real buying in the market of that stock, you are merely betting with your SBP that the stock will indeed rise, as no "real" shares were ever purchased if the stock rises the SBP has to pay you from their own pocket, as because nobody purchased any shares the winnings need to come from somewhere, therefore it is quite obvious to see why your SBP will go to the trouble of paying one of the big boys commission to borrow some stock from a buddy down at JPs so as they can sell the stock in the market knowing that because your buys are not real, all the real market sees is sells, which when there is no real buyers the price will fall of course, That IMO is exactly what we have witnessed here, the funds selling the stock have made a fortune as they sold above 2150p all the way down to these levels, so they have banked a good few million, whilst at the same time flushing out the "betters" in the market who could not afford to hold and so the SBP takes their winnings and gives a cut to the M and everyones a winner except...........you guessed it, YOU the spread better!!Personally I think they went a little too far here and it will need to be taken back up shortly or they will risk losing their profit.Good luck.
bamboozled
01 Nov 2016
Re: Technicals are way way oversold Still relentless,yet another drop today and somebody sold about £2.5 mill worth for 1734p just a while ago. Must ping back soon! A further drop in next couple of days and I buy!Need to watch next week as well mind.....
Hardboy
01 Nov 2016
Re: Technicals are way way oversold No matter how low the price goes I think a take-over is unlikely given the amount of shares the directors own & influence; or at least the quoted share price will not affect how much they would be willing to sell it for, and given the recent purchases that is way way above current levels. Forgetting the technicals, it would be very brave (and probably stupid) to keep any short positions open through to a scheduled announcement, which is 9 days away now. Just taking one minor quote from the interims: "If certain specific market opportunities for our US Injectables business continue through the remainder of the year, there may be scope to increase our full year guidance for 2016." Some signs of that happening in the update & the price has to rise sharply. So, using a different logic, I come to the same conclusion that if it is shorts which have driven this lower, most positions will be closed over the next week.
Fred Prior
01 Nov 2016
Technicals are way way oversold Hi Guys, as I am sure you all know, this stock has been artificially driven down no doubt by the 3 hedgies that borrowed stock (from someone) in August, with the sole intention of taking down the share price, to do this in such an orderly fashion, they must be clearly in collusion with market makers, who in turn must be acting in collusion with spread bet providers (and people say markets are not rigged or manipulated).This in effect gives the borrowers of the stock a licence to do as they please, be that flipping the stock to each other day in day out, which IMHO is exactly what we are seeing here, the trouble with this is, the lower they take the price, the more likely an opportunistic bidder will seek to pounce, theoretically the hedges are taking a bigger gamble here than that of the persons they seek to financially gain from and flush out of the market, as should the mere whiff of a takeover of Hikma surface at these lowly levels, that coiled spring that is severely under tension right now, will in an instant unwind and bloody all their noses, that is the risk they run.IMHO that time is coming as the current 14-day RSI is at 18.1, the 7-day is at 9.88, and the 3-day is resting at 5.11. these numbers indicate not only extremely oversold conditions but extremely attractive prices for a predator......I am quite happy in the knowledge that if its good enough for insiders to throw millions at this stock, then its ok if one has it to throw thousands at it, I have instructed my broker to buy more should we touch 1700 and will continue to buy all the way to Zero if the need arise, can stocks go into a minus position?I am still trying to find out whom has lent out the stoic, as I believe that will expose a link to quite a bit of unsolved market manipulation that has been occurring with certain stocks.Keep the faith, the directors have!Good luck
bamboozled
28 Oct 2016
Re: Sector Yep,it has indeed been in a predictable and uncomfortable pattern almost every day!. Maybe FP's theory is correct,who knows.My guess is this will bottom out somewhere between here and low 1700's.The last time it dropped out to 1600's briefly was around the profit warning in March I think(before bouncing back sharply). If there is any nasty info out there,be sure we will be the last to know..... ! Strange after all that director buying?! I'll buying more shortly.
PistonBroke
20 Oct 2016
Nearly 30% off year high - Directors buying like candy - income in $ - WTF?
stokker
15 Aug 2016
I just created a Hikma Pharmaceuticals poll: Is West-Ward Columbus performing well? What do you think? [link]
stokker
15 Aug 2016
Columbus site is failing. Boehringer sold it for a reason, it now seems. Mass exodus of technical staff and no filings but one or two out of 16 promised.
Simbrad
22 Jun 2016
"The past year has been a turbulent one for Hikma. A shortage-fuelled growth spurt and a resulting guidance upgrade had heralded the Jordanian company’s entry into the FTSE 100 in March 2015 (following the c.25% rally since the beginning of the year), making it only the fourth pharma constituent to become a component of this ‘blue-chip’ index. Fast forward a year, however, and multiple downgrades later, investor enthusiasm towards the company had waned, resulting in the stock being kicked out of the index in March 2016." AlphaValue's view on research tree...
