I made good money out of shorting Quindell (QPP). So I am not unsympathetic to the possibility of QPP being overvalued. How would I be? But I am prepared to change my mind. And here is such a moment. The fact is that the average punter has decided that because the SFO are having a go at Terry means that there is more trouble within QPP yet to be revealed. This is silly: Wednesday’s results RNS could hardly be clearer. QPP does not guarantee to return 100p per share to shareholders. But they declare that they reasonably expect to – to have been unreservedly gung ho when no such confidence would be in point is potentially a criminal offence. However, in this case, QPP’s board is a highly professional and experienced board and it does not spout without thinking. Be it also noticed that they expect to receive more from Slater and Gordon. That is hardly possible if there were the reasonable reservation as to the emergence of these adjustment payments. Anyway, all this makes QPP worth well north of 100p – I think 150p is in point.
I got hold of Lucian who is kayaking in north east Poland to see what he thinks about Tern (TERN) which I have shorted at 20p. All he could do was remark that Stuart Broad should get a peerage. He’s had a strange tern. Lucian, I mean, not Stuart. But he asserts the important point which is that TERN is very far ahead of events. Further, Rob Terry will not turn up on the register. Or will he? He likes being ubiquitous and, further, he is not yet in prison. He could do anything nutty. Or naughty, even.
No sooner had I slagged off William Hill (WMH) than they reported. After a long period of domination they are emerging as vulnerable. Clearly, there is a battle emerging between the big quoted bookmakers. It won’t be good for share prices.
Finally, Dialight (DIA) today announce that so far has their business contracted they are sacking a lot of staff. This has been construed as bullish. Cor Blimey!