#NEW update 15/05/2015

A few points about T20’s etc and how the flippers expected the placing shares to fill their short positions.

We have the EGM at 1pm on the 19^th(Tuesday), the shares should be tradable i.e settled in peoples account according to the RNS by 8am Wednesday morning.

For a start I can’t see how this would possibly happen as once approval has been given it normally takes 48 hrs for the shares to be admitted to LSE trading, but let’s ignore that. I rather think the BOD thought they could give the go-ahead to the stock exchange prior to a rubber stamping EGM. (This was a very bad thought).

So the flippers will be assuming they can close their positions (and indeed have likely arranged to have their positions covered and closed by Wed or possibly Thursday.

The T20 time is not FRIDAY (today).

However there is a big caveat in the above. The placing shares are now very unlikely to go into the accounts on Wednesday, a “No” vote is almost certain. This means the flippers have a big problem. They have an even bigger problem in that the shares are taking 5 days+ to settle atm. All of this indicates that if they want to meet their T20 obligations they need to start settling now, if they don’t every day adds to the risk. If they wait until Wed/Thur and the SP spikes on a “no” vote news then they really are buggered.

The rise start a couple of days ago imho, with the flippers starting to try and buy the stock they need. It certainly hasn’t finished.

2 Billion short fall in shares.

Now onto the important bit, the short squeeze isn’t just happening because of the flippers, its moved beyond that. Prior to the dilution announcement NEW was heavily shorted by individuals who thought that a placing was going to be needed. These shares need to be covered.

To meet demand the Market Makers will also be heavily short of shares.

To meet clients expectations of settled shares, many, many brokers will also be heavily short of shares.

All of this is an almighty mess, but one fact is inescapable everyone needs shares, if you have settled shares in your account, then your hoarding a very in demand product, keep hold of it.

The open offer and everything else is largely irrelevant. That will be news for latter following week. I do expect though an announcement that an EGM has been called to kick out these cretins, that will likely be Monday and heavily announced over the weekend.

It is not a share to sell out, in fear of bad news over the weekend as simply I can’t see any bad news that might break, but can see plenty of good news that might surface over this time.