Good evening!
A short, and very late report tonight, as I had to head down to Bournemouth to visit Mum in hospital today. She's had a nasty do, with a heart attack & pneumonia, but is beginning to improve, with antibiotics & oxygen. So fingers crossed. Anyway, I have my laptop with me, so should be able to write my reports here in the mornings, and spend the afternoons with her in hospital, all being well.
InternetQ (LON:INTQ)
Share price: 74p (up 19.4% today)
No. shares: 40.3m
Market cap: £29.8m
(at the time of writing I hold a long position in this share - NB. just as a short term trade)
Additional response - this is the latest company that has been subjected to a bear raid, which I reported on last week here on 3 Dec 2015.
I agree with a lot of what the bear attack says. However, I've been studying how these things pan out, and there is often a substantial rebound in share price when the company puts out a rebuttal. In this case, the company put out a rather weak rebuttal last week, but has issued something that looks a bit more substantial today, going through each point in detail.
Have I taken leave of my senses by going long of a share which I think is a load of rubbish? Quite possibly, but my hunch is that there was strong rebound potential in this share, and I think the bear case lacks the killer punch needed to actually finish off the company. Remember that shorters need to buy back the shares to bank their profits, so you can get very powerful rallies in heavily shorted shares, which can be nicely profitable trades on the long side, if you get the timing right.
So far, so good - my long position is in profit, and I think there could be more to come, although it's high risk, and only a punt - i.e. intended for a very short term hold. I'm only mentioning this, because I am obliged to report all holdings, so this being an unusual one, it needed some further explanation.
What happens next? Presumably Tom W will keep bashing away at it, but as mentioned above, I don't see a killer blow having been dealt, and the law of diminishing returns seems to apply to shorting attacks. Shorts have…
