Citywire AAA-rated hedge fund star Thierry Lucas has ramped up his stake in out-of-town retail warehouse chain Pets at Home (PETS) as its shares tread water close to last years record lows.
Lucas increased his holding in the business from 1.6 million shares to more than 15 million or just over 3% worth £25.7 million at a share price of 171p, down from a 2015 high of 311p.
The shares are held across Lucas fund range at his hedge boutique Portland Capital, which he launched in 2012 and which last year increased client assets to above $1 billion (£714 million).
Enthusiasm about Pets at Homes prospects lifted shares almost 30% in its first 18 months on the market, but buyer appetite was already flagging even before a warning on weak sales last year drove its shares 36% lower to an eventual bottom of 154p.
Former private equity owner KKR sold down its remaining 12.3% stake in the business at the end of January at a guide price of 170p. "
I would sit on my hands if I were you. No CEO and a trading model which is beginning to wobble. It's one of those situations where the next weeks trading might end up with a 3 or 4 % rise or a 10% fall. I have got badly scared hands from trying to catch falling knives in the past and it is very difficult to judge right.
We were both right in a way :- Coltrane Asset Management, L.P. 1.90% ðÔ 0.10% 25 Sep 2017
They increased on the 26th , not much but it was an increase . Still , over 8% of the shares have to be bought back at some stage before the SP goes up much more . If they buy them back on the same day , could be interesting .
My information comes from here :- https://shorttracker.co.uk/company/GB00BJ62K685/
You imply that short interest had increased recently , according to this site that is not correct . In fact the opposite is true if they are to be believed . I suggest you post a link to your information .
My info of 8.82% was correct at 1600 today, your 8.65% may be correct, and may not be. However the fact is either % is a high figure, sufficient for me to take action, what you or others do is entirely your decision, but as I pay a subscription service for the most up to date shorting info, I felt others would want to know the situation.
in the last 6 weeks short positions have moved from just below 7% to today at 8.82%, so the 6 inst,s involved must now be well under water, but rather than close their positions they have increased them??
They must take the view that the share price will collapse, or if they continue to increase their positions it surely will. I nhave seen what they have done to Carillion, and as they continue with CARD I have decided to take the profits I have, then key a watchful eye on the price, and % of shorts, over the next 3 months.
Yes but.....on 14 September, Wynnstay PLC (in which I have a small holding <2% of my total) announced in an RNS that it had issued a notice of intent to appoint administrators for its Just For Pets business, having considered all options for the business, including a sale. The business is much smaller than Pets at Home, at 25 stores, but seems to have been well run as far as one can tell. The reasons for the administration were that the business had become unprofitable because "Changes in consumer buying behaviour, coupled with additional sources of competition and greater cost pressures, have placed an increasing strain on the business and the subsidiary has become loss-making."
I don't hold shares in Pets at Home, but I wonder if their model is also being affected by these changes in buying habits, additional sources of competition and greater cost pressures.
"Is a 4% yield enough to tip the risk/reward profile on @GB:MCX:FTSE 250 retailer LSE:PETS:Pets at Home positively?At about 190p currently, and according to 25 May projections by company broker Numis Securities, its stock trades on a forward ..."
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.