Sunday 20 May 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
Tom Winnifrith Bearcast - No Roger don't close down the fraudbusters please support investigative journalists not a failed establishment
It is individuals that commit financial crime not corporates. And thus, as I have noted so many times before, the only way that we will clean up financial markets in the UK is by starting to throw the book at individuals who sin, making sure that all transgressions, however small, go punished. And that brings us to today's news that the Financial Reporting Council (FRC) has started an investigation into the conduct of Mr Richard Adam and Mr Zafar Khan, former Group Finance Directors of Carillion (CLLN) and members of the ICAEW.
The only UK financial watchdog that is anything other than a poodle has again bared its teeth and again it is the auditors at KPMG that are in the firing line, this time over Carillion (CLLN). Still being investigatred over its role in the Quindell fraud, let off the hook on HBOS, KPMG at least knows how the Financial Reporting Council works.
A note popped into my inbox with regard to the demise of Carillion. At first glance, it seems we’ve all been here before – way back in 1990 (when even Tom Winnifrith was a young man). For Carillion today, read Coloroll then.
So Carillion (CLLN) has gone tits up. You do rather feel for its 19,500 employees but as folks work out what happens next there is an orgy of recriminations. What lessons do you learn?
Time is rapidly running out both for support services group Carillion (CLLN), and for those not short the stock.
We review the performance of the top shorted London-listed shares as at the start of each year. For 2017 that review is HERE and, from the FCA's spreadsheet of short positions required to be disclosed to it, we now have the ten top shorted London-listed shares at the start of 2018...
The real problem that Carillion (CLLN) has its its balance sheet. It clearly needs a debt for equity swap and placing which will see shareholders diluted to buggery. This remains a slam dunk short. But it never rains but it pours. It seems that Carillion may have misled investors.
Early each year, we note the top shorted London-listed shares as at the start of the year. How did 2017's perform?
Carillion (CLLN) topped the top shorted London-listed shares at the start of 2017 (recent performance update HERE) and remained so in our Autumn update HERE. Having commenced the year above 235p, the shares had slid below 200p before a July profit warning, business review and Chief Executive “stepped down” announcement. They are currently down from above 40p to below 30p today on the back of an “Update” announcement…
The accepted market wisdom that one should never be a bear in company throws up a lot of exceptions. Carillion (CLLN), for some time now top of the leaderboard of the most shorted shares on the LSE, is a good example.
Early this year we showed the ten top shorted London-listed shares at the start of 2017. Following the recent half-year and crash in the top one, Carillion (CLLN), how are they performing?...
From the FCA's spreadsheet of short positions required to be disclosed to it, at the start of the year we showed the ten top shorted London-listed shares HERE. The following updates, showing those with a current reported short position of +7%...
From the FCA's spreadsheet of short positions required to be disclosed to it, the following shows the ten top shorted London-listed shares at the start of 2017...
From the FCA's spreadsheet of short positions required to be disclosed to it, the following details the disclosed most shorted London-listed shares at the start of 2016...
From the FCA's spreadsheet of short positions required to be disclosed to it, the following details the 20 highest single net short positions and the changes (red if short increased, green if reduced) since a previous analysis HERE.
From the FCA's spreadsheet of short positions required to be disclosed to it, the following details the most shorted shares (by net short position %) and if this position has increased (red), reduced (green) or remained unchanged (black) since a previous analysis HERE.
Carillion plc (CLLN), “following discussions with Balfour Beatty's major shareholders”, has offered improved prospective merger terms in an attempt to get the board of Balfour Beatty (BBY) to re-engage in discussions and agree to get a current 5pm Thursday deadline for Carillion to announce a firm intention or not to undertake a transaction extended. The following updates with Balfour having now rejected this.
Having previously concluded on the Balfour Beatty (BBY) and Carillion (CLLN) merger saga that ‘the potential synergies from a merger appeal to many investors, but with uncertainty as to whether a transaction can be resurrected and ahead of the results announcements later this month, it is a watching brief here for now’, the following updates with Balfour having now affirmed that it has rejected a revised proposal from Carillion and “lost confidence in the likely delivery of a successful transaction”. Carillion meanwhile is to “give further consideration to its position and will make a further announcement in due course”.
Doing the early morning rounds of RNS announcements, I’ve noticed an increasing frequency of companies carefully stage managing corporate actions apparently to deflect attention from less than impressive results. On its own, this view is too anecdotal to be a reliable indicator of a significant top, but I can’t help but wonder the extent to which companies in the FTSE350 are struggling to keep up with QE-fuelled expectations?
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