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Noticed this when i traced back what i was doing on 2nd August 2016 .. KRS buy ( T ) ... looks like this was a total loss ?
Shorters haven't been 'flushed out'. It's the most shorted stock on the market. But some of the hedgefunds shorting kier are reducing their short. Current share price suggest that the company is going bust like carillion and interserve, but that was just the market making an obvious conclusion months back. Instead, according to the last trading update, debt is reducing. If the company isn't bust, this is underpriced by a factor of 3 or 4 at least. You've presented no facts to support your claim that 'this is going to zero'. Kier keeps winning contracts and is reportedly paying suppliers early! They had a rights issue none months ago and cancelled the dividend. Rights issue was £250m and the dividend last yr was about £67m. All of that money has gone into cash and is being used to reduce supplier payment days (down from massively from 57 to 41 days) and reduce debt. Results are out on the 19th. That's why the shorters are reducing. Kier isn't going bust and will likely be rerated on the 19th. Broker note from Peel and Hunt have a short term target of £2. So it's not 'a shorters' dream'. It might be a shorter's nightmare though.
Ripley: Is this just rumour-mongering? Which CEO, which contractors and which banks?
It seems odd to me that when speaking of a possible buyout of Fum as a company that the value of the DermaSys system is never mentioned. Is it really something special? I suspect it must be or why would T&R bother to bring out another TPR gel in a market that is loaded with them now? Could it not be used to deliver other drugs? Seems like a formidable asset unless I am missing something.
Luckily, most of Kier's work is local authority and regional groups. Kier is known as a regional construction company. HS2 isn't a big part of its work. Only has 2 small HS2 contracts out of something like 30 that have been signed on. Neither has broken ground. Kier has around 1,000 regional projects; that's where it's market is. When all the builders dropped the other day on Brexit news, Kier didn't move 1p. Solid resilient order book, with new contracts won practically every day. Results out on the 19th next. Expecting some writedown, but as long as debt is not going up, some asset sales and any kind of profit, with good turnover, this share should take off. Currently it's priced to fail. Anything less than a disaster in the results and the share price will probably hit the broker targets of today (£2). Might be volatile between then and now, but I'm buying on any significant drops. Also, one hedge-fund shorter appears to be closing its short (Squarepoint) reducing every few days and will soon be at zero. The other hedge funds not moving yet.
Peel Hunt has a new rating out on Kier - Buy with a target price of 200p. Widely reported (am not posting a link) easily googled.
I agree frog; proroguing parliament seems wrong and most people think so. However, the political machinations do not seem to be affecting the Kier share price. Reasonable share volume and the share price is steady around £1.20 at the moment. Just three weeks until the results presentation.
Sorry for the glitch there more to the post but tough to do this with the cell phone.
I have been following FUM for more than a year and finally bought shares in mid June. I have to say I have enjoyed reading all of you guy's posts going back to '16.