* RPC Group, the reason to start writing
Yes, I decided to start writing/documenting/tracking these “occurrences” because of RPC Group.
Let’s go back to 8th of July, Sunday evening. I was reading “Sunday newspaper round-up: Brexit, GDP, pensions, submarines, Sky” and something reminded me of the Provident Financial story…
“Hedge funds are cashing in on the war on plastics by shorting shares in packaging giant RPC Group. Bets worth more than £240million have been placed against the FTSE 250 company, whose shares have come under pressure recently because of the clampdown on plastic packaging waste. — Mail on Sunday”
In a similar fashion, I wanted to ensure the source stands up for the claims and found the article “War on plastic makes packaging firm RPC a target of hedge funds as they bet the firm’s shares will drop further”.
“More than 8 per cent of RPC’s £3billion stock is out on loan to short-sellers, according to data from the Financial Conduct Authority… Firms that have taken out multi-million pound wagers against RPC include BlackRock and CapeView Capital, which also cashed in on Carillion’s demise. No major short positions existed until October. But there has since been a sharp spike in activity, with RPC shares falling nearly 30 per cent.”
… yes, the FCA confirms this here: Notification and disclosure of net short positions.
I noticed that in 2017, RPC group released a Trading Update on Wednesday 19th of July.
And of course this Wednesday, RPC Group released a Trading Statement, highlighting numbers that were lower than the previous year raising concerns. More details here: “RPC under pressure from investors over growth plans”.
1min chart on Yahoo Finance showcases the impact:
Disclaimer
This story is intended for general interest only and should not be considered as investment advice or as a recommendation to invest, trade, and/or speculate in the markets. The author does not recommend particular stocks. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas or opinions or implied herein, are committed at your own risk, financial or otherwise.
