Market Report: Short-sellers raid Edi Truell’s Tungsten Corporation

http://www.independent.co.uk/news/business/sharewatch/market-report-shortsellers-raid-edi-truells-tungsten-corporation-10314685.html

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Short-sellers continue to raid Edi Truell’s Tungsten Corporation.

The well-known City financier’s digital invoicing group, which floated on AIM at 225p in 2013, has tanked on the junior market this year. The shares were flying high at 409p last September but are now at a lowly 76.5p, up 0.25p on 11 June.

The company is one of the most shorted stocks on the London market, with at least 7.6 per cent of its shares out on loan to short-sellers betting on the share price falling further.

JPMorgan has been steadily increasing its short position in recent weeks. Just over 3 per cent of the company’s shares are on loan to the asset management heavyweight.

The business has been struggling to meet its ambitious growth targets and, with an increasingly uncertain future, the City has sensed blood. Mr Truell, though, has put his money where his mouth is, investing in the recent £17.5m placing to keep his stake at just below 17 per cent.

All eyes now are on the outcome of its review of its banking arm, with a potential sale in the offing.

The FTSE 100 edged up 16.47 points to 6,846.74 with all the talk about last night’s Mansion House speech from the Chancellor, who unveiled a fire sale of assets, including Royal Bank of Scotland – the Government’s problem child.

Royal Mail shares were the biggest losers on the top flight, down 23.2p to 493.3p, after the Government sold a 15 per cent stake for 500p per share.

JPMorgan Cazenove, which has a 605p target price, told its clients to buy shares in the postal service, suggesting the Government’s sale might simplify upcoming labour and pension negotiations.

Sainsbury’s, up 3.7p to 264p, may have reported a sixth straight quarter of falling sales but analysts remained upbeat over its prospects under the direction of Mike Coupe. Tesco, up 4.2p to 215.65p, and Morrisons, up 1.7p to 181.6p, were also helped higher.

Over on AIM, Adgorithms fared well on its market debut. The Israeli online ad specialist, which raised £27m in its IPO, finished the day at 139p after floating at 133p.