Shouldn’t the Financial Regulator investigate this meeting? Isn’t it just the opposite of what they’re already investigating on the short-selling side?
Is there anything wrong with a couple of like minded individuals who think a company is undervalued getting together to buy it?
It might be worth looking at whether this qualifies as pump and dump. If the plan was to convince the general public to start buying Anglo in the hopes that they’d make a profit when the builders finally buy in then that’s dodgy.
It’s particularly dodgy if some of the builders already bought some shares before announcing what they were planning. And it will be incredibily dodgy if those same builders dump the stock if/when it gets a bit of a lift.
If they were serious about making a big move, they wouldn’t have announced it. I’m convinced this is a ploy to get other people to either buy Anglo out of greed, or close out short positions out of fear.
Stick to selling houses lads.
Is there anything wrong with a couple of like minded individuals who think a company is overvalued getting together to short-sell it?
If one deserves an investigation, then so does the other.
My point being, the toothless Regulator made such a fuss of the short-selling issue that they’re being hypocritical in not putting this lark in the same category.
If a group of lads want to get together to buy a bank, let them.
This mysterious “hotel meeting” that was reported about in last weekend’s newspapers shows, if anything, that Anglo Irish Bank is a synonym for “Irish Builders’ Bank”.
If Anglo ever did need funding, the government will find themselves in an extremely precarious position: if the perception is that Anglo is effectively a builders’ bank, the general public will not take too kindly to their money being used to bail these guys out (along with the affordable housing scam/scheme and all the other dodgy tricks that go in in Ireland).
Also, I don’t see how a 12% rise in an already extremely volatile bank share price in two days is such a good thing. What are the fundamental reasons for this? Anglo might as well list on the AIM.
Ah, but did you take their talk of investigating the Short selling seriously?
When banks lose 40% of their market Cap and pensions take a hit, people in charge need to make noises and be seen to be doing something.
If they didn’t cooh and cluck at the right times people might start asking why we have highly paid regulators and authorities at all.
They can’t come out and tell the truth, that they have very little to do around the yard so they busy themselves closing doors after horses have bolted.
When a share price goes up a few percent the public don’t see it as a bad thing, so those in charge keep quiet. You don’t want to be coming out cooing and clucking when you don’t need to. That attracts attention.
FFS it is not just hedge funds that are selling Anglo. Regular domestic and foreign institutions are probably underweight Irish financials too. Bear in mind that it was US and UK hedge funds who first started shorting Irish banks back in 2007. The dismal performance of many of the big Irish equity funds last year (and in Q1 of this year) demonstrates how poorly diversified they actually were. These guys were mainly long and wrong of Irish banking shares and they (along with many other normal long holders) have been big sellers of Anglo’s shares too.
As it stands there are approx €500m worth of Anglo shares on borrow at present (approx. 8% of outstanding shares). Whilst this is a significant chunk very few investors (whether they are hedge funds or regular long-only) would have wanted to own Anglo Irish over the past year and this situation is unlikely to change in the near future.
Hedge funds don’t (or at least rarely) ‘target’ companies to short and then agressively push the price of the company’s shares down in order to make a very quick profit. There needs to be a fundamental reason to short the shares in the first place. Anglo is just exposed to the all the wrong things at the moment and developments in the credit market have put a question mark over the viability of its business model.
This is obviously a tactic to scare the shorts. But it’s amateurish. If they were serious they should take the company private. But, of course, in that event, they would like the price even lower. A clear case of the heart pulling in the opposite direction from the pocket-book.
Did these guys really try to turn the market with this? If they did, they will have lost a lot of money in the past couple of months!
I am sure it was all talk.
After all these guys know the score better than anyone…
It was a brilliant idea at the time…
"Our stock is getting hammered because we have too much LEVERAGE exposed to the wrong asset class…
I know, why dont we teach the market a lesson and buy that same stock with eh, alot of LEVERAGE
Damn, no-one out there will lend us the money. Hmmm, maybe others are beginning to think this credit crisis will last more than 3 months…Muppets…They’ll see!!!"
Another big win for mr_a… I don’t suppose you’re still active on the short side? Be nice to know that someone made some money out of what was always going to happen to Anglo.
PS Can you Liszt me the 10 if you got your pie?
More evidence From way back in April 2008 that what these pricks were at, was being done in plain sight.
Next time some arsehole Fianna fail supporter tells you that nobody could have predicted what would happen tell them to fornicate with themselves.
It’s fucking shameful that us bunch of internet dorks could see this shit in plain sight and yet the great and the good can bleat ignorance.
which is it?
Corruption or incompetence?
Wise words from years ago. How do you think the general public will take the latest Anglo news?
The Irish Public,milord,will simply do as they always do.
The I.P.,to a man,the products of our Knowledge Based Economy,will simply plead ignorance of any word or phrase in excess of two syllables before flailing around for somebody to “Rescue” them.
Cue Martha Reeves and the Vandella`s version of the theme tune