Good morning!

Actually it's not such a good morning for me, because I'm effectively long GBP, and I don't like the exchange rate movement!

EURGBP was 0.866 last night, and is now 0.881 as I write this.

Of less relevance to me personally, but of great relevance to many companies, GBPUSD has fallen out of bed. From 1.296 prior to the result, it's now at 1.27.

So it's a win for exporters and a loss for importers. Two of the big-caps in my portfolio have consequently moved in the appropriate directions: Burberry (LON:BRBY) is up 2.5%, while Next (LON:NXT) is down 4%.

As if the pound wasn't suffering from enough uncertainty already, we now have to deal with the potential for another election to sort out the hung parliament problem.

From an investment point of view, there's not much we can do except try not to get too exposed to the same directional moves - a mix of importers and exporters can help to manage the risk. Or the ideal situation is to find companies which are naturally hedged, or are otherwise immune to exchange rate volatility.

Anyway, that's enough rambling. Time for some company news:




DX (Group) (LON:DX.)

  • Share price: 9.5p (suspended shares)
  • No. of shares: 200.5 million
  • Market Cap: £19 million

Investigation by the City of London Police

Logistics company DX is currently suspended as a result of ongoing discussions with respect to a potential reverse takeover by John Menzies.

If the shares weren't suspended, the share price would probably be taking a beating as a result of this mysterious and ominous announcement:

The Board of DX announces that it has been notified by the City of London Police Economic Crime Directorate ("City of London Police") of an allegation that has been made against the Company which has resulted in the commencement of a preliminary investigation centred on the DX Exchange operations
The investigation is at a very early stage. The Board of DX received the details of the allegation on 7 June 2017 and is co-operating fully with the City of London Police.


So the Board found out two days ago. Perhaps they still weren't sure yesterday whether or not to announce it publicly? I…

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