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Equities First holdings LLP: is Cloudbuy the next victim?

By Nigel Somerville, The Deputy Sheriff of AIM | Sunday 15 March 2015


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Last year ShareProphets broke the story of how Equities First Holdings LLP was doing stock loans to AIM listed companies whereby the stock was sold to EFH who were then themselves free to sell the stock into the market. Because these deals appear to have margin call clauses, substantial falls in the price of the stock can trigger a default. It may come as no surprise, then, that the share prices of the stocks concerned have not seen universally stellar performance.


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