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It’s mighty strange that Mike Lynch has been charged by the DoJ with defrauding Hewlett Packard whereas it was widely considered over here that Autonomy’s accounting was very dodgy – which state of affairs would have been known throughout H-P’s takeover due diligence. All one can say at this stage is that it pays to be a lawyer.
It is reported elsewhere that Neil Woodford has been selling BTG (LON:BTG) stock for cash when there is a cash bid awaiting completion – so he has inevitably been taking a discount with an implied interest cost considerably greater than he could possibly compensate for elsewhere. If so, he must be in serious fund management trouble: the pressure of encashment by fund holders should surely not be dealt with in this manner.
The chairman reckons that in the not too distant future there will be one helluva bounce for UK domestic-facing equities (be it noted that this category excludes FTSE majors which, typically, are all benefiting from weak sterling). He suggests lining up to bet on sterling versus the euro.
Finally, I have had an amusing couple of days going long on Ted Baker (LON:TED) since the #MeToo movement is beginning to bore me and, more importantly, the women who shop at Ted Baker. Indeed, a straw poll suggests that these women have never heard of Ray Kelvin. My long position would have done alright if it were not for this morning’s trading statement which is a bit downbeat. Nothing to do with Ray at all.