Ceres Power – has somebody been shorting the open offer stock and about to get their b*lls squeezed??!!

Again, even with the naysayers of Ceres still calling for the death knell to be sounded on the stock, the share price continues to creeps higher… We’ve made our stance clear on numerous occassions if you check out the tabs on the right for Ceres.

It looks like the seller(s) have finished and with the new stock going to a “locked up” home with IP Group and Ora Capital restricted from selling for 12 months, the additional ‘spice’ of some shorting of the Open Offer stock occurring (and whose allocations may in fact get scaled back given Sarasin Partners commitment to their full entitlement of just under 33m shares) may create a short squeeze should the sellers be forced to buy the stock back once the Open Offer results are revealed (18 Dec).

The “gap” from 8p hovers tantalisingly over the stock and I guess it is this type of level that would tempt existing holders who had written the stock down to zero. For both Ora & IP, their game really is to either swallow the entire entity given the platform of between 50 & 60% (and Sarasin with just under 7%) of the enlarged share capital they will now hold. Such a large platform is in ideal bid base. Alternately, they will want to pump out progress announcements during 2013 that will allow them to raise capital at a higher price than they paid.

We remain holders.