UPDATE: SHORT TERM IDEAS: DIA

CLOSING FOR +6.2%

Locking in +6.2% in our trading short initiated post the placing.

We are in the eye of the market unwind where placing stocks tend to get punished as we saw yesterday.

There was no fundamental basis for the trade and for that reason we are happy to take profits.

 

DIA SHORT-TERM SELL

Tuesday • 19 May 2015 • 10:10

A smart controlling shareholder is selling entire stake.

Some will say they are trying to monetise something that has doubled from the IPO, but I would think it’s more their view of fair value being reached.

On top of that, an 8% placing was way way too tight at 2.8% discount, which was confirmed by the fact Citi have now disclosed a position, so they’ve had to exercise the underwriting.