trading gbg, page-4

Imac My timeframe is about a week - but will take into account the issuance date which could lead to some selling by weak handed new holders if the SP is over 25.5c. I might even buy more around the issuance date, if there is weakness, and extend my targeted exit date to a week past issuance.

PP - from my experience, sometimes these placements go underwater - but they tend to do so in a selling frenzy a la LYC last week. GBG seems to have found support, and support seems to be strengthening. Also the market has been expecting a cap raise, which has happened, and it is not certain more capital will be needed. I would think shorting from here may work better if you wait for a big outsized rally (if it happens) in the first two days, and short (possibly) expecting to close on the issuance date. The cap raise will have alleviated some market concerns in this instance IMO. Also China data has stopped worsening. You may be right, but I think the risk in that approach would be very high.

GLTA and thanks for responses