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clock Created with Sketch. 02/08/18
02:56
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Originally posted by birdlives
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Company reaffirming profit guidance provided 6 months prior only a month or so before a result release should have been a strong signal to any shorter to close out their position. It indicated the company would at the very least meet guidance with possibility of earnings beat; would have been negligent or misleading to reaffirm without knowing for certain considering the accounts were pretty much at period end. Second warning would have been Bennelong Partners (2nd best performing fund manager in last year or so I believe) taking $71 million position. Congrats to BP for now making their clients approximately $11 million in the space of 1 month, and to anyone else who bought the 16% bounce. To quote Hempton on shorting, 'A thesis which says "I gotta wait for government" is a bad thesis.'
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Good example of that is Bill Ackman shorting the Herbalife alleged pyramid scheme.
(20min delay)