Evil Knievil: Topical fever

It would take a truly fatuous regulator (but there are lots of them) to suggest that the London Stock Exchange should be closed in the absence of reliable announcements by companies in relation to price-sensitive information. What about investors who would like to raise some cash or to sell for tax-planning reasons?

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Fevertree (LON:FEVR) closed last night at 900p. Quite what makes buyers think that consumers will pay a premium for tonic water in today’s climate is beyond me.

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William Hill (LON:WMH) has been sold down to a capitalisation of just £400m on fears of insolvency. But landlords of WMH would have to be mad to seek vacant possession: where will a replacement tenant at any price emerge from? It would be far wiser to hold over collection of rent and see where WMH are in, say, three months’ time. Rent uncollected can then be capitalised into WMH new shares. Further, insolvency could invalidate licences already granted, particularly in America. It cannot be wise to throw these assets away.