What an interesting twist today on QPP. Lets get it straight. I am not a fan of QPP, nor would I normally buy the shares, but occasionally an interest trade presents itself.
QPP is an out and out gamble and not for the faint hearted but what we saw today looks to be viewed by the QPP BOD as a bunch of shorters taking a position, then a small unit releases a devastating research note.
What we probably saw were the shorts being closed today at 20-24p.
"The Board of Quindell Plc (AIM: QPP.L), is aware of the publication today by Gotham City Research LLC. The Board rejects the assertions raised in this note and considers the note to be highly defamatory, deliberately misrepresentative and entirely rejects the conclusions that are made. A more detailed response shall be announced before the end of this week. In the meantime the Company is also consulting its legal advisors on what immediate action can be taken against Gotham City Research LLC and is reporting coordinated shorting activity to the appropriate authorities."
In other words they refute all the accusations, they will issue a point by point rebuttal in the next 3 working days and they have noticed strange shorting activities.
If the response is good enough you might well see 40-45p, if its reasonable then 35-40p, if its not good enough 20-25p. If its dire and they admit problems 5-10p.
I've taken a punt and brought £10k @ 22p i see enough upside to make 50% quite easily in the next 3 days.
Its a gamble but worth it.
One things for sure i wouldn't want to have had an open short position and closed it today as they police will be all over you. If legal actions follows against Gotham, I also wouldn' tbe surprised to see that expanded to cover various blogs etc on the subject....An interesting few weeks ahead.
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