What does anyone think about this share in the short term?

Rise to 685?

Seems to be a good trender !

StockMarketWire.com
Sub-prime lender Provident Financial launched a £331m equity raising after misconduct payments dragged it into the red.

The company said a resolution had been reached over a Financial Conduct Authority investigation into its Vanquis Bank unit regarding a failure to adequately disclose interest charges to customers.

The total estimated cost of the settlement of £172.1m reflected customer restitution in the form of balance reductions and cash settlements, plus a fine issued by the FCA.

The company's Moneybarn unit continued to cooperated with the regulator in its ongoing investigation into affordability, forbearance and termination options, with an estimated liability of £20.0m, Provident Financial said.

The charges led it to book a statutory pre-tax loss of £123.0m, compared to a £343.9m profit in 2016.

Proceeds of the capital raising would meet the estimated costs of the FCA investigations and 'ensure the group has appropriate levels of buffer over increased regulatory capital requirements, primarily due to an increase of approximately £100m in respect of conduct and operational risk assessments'.

'When I became group CEO, I stated my key objective was to execute a turnaround of the group,' chief executive Malcolm Le May said.

'Today we have made progress on that objective by agreeing a resolution with the FCA in relation to Vanquis Bank and we now have a clear view on the estimated cost of the FCA investigation of Moneybarn.'

Le May said the group's businesses were all 'well positioned' in their markets.

'In 2018, the group will continue to rebuild trust with our customers, regulators, shareholders and employees.'

'The group's turnaround is making progress, but the board and I realise there is still much to do to achieve a customer centric business delivering long-term sustainable returns to our shareholders.'

Up 75% - amazing.

Peel Hunt Hold 943.80 870.00 870.00 Reiterates

Numis Buy 943.80 1264.00 1264.00 Reiterates

Liberum Capital Under Review 943.80 - - Under Review

Shore Capital Hold 943.80 - - Reiterates

Some interesting gaps on the chart.

Crazy times.

I assume this is partly shorters getting fried.

...and if the stock goes ex-rights, they get fried...extra crispy!

DIVI paid what is it? for 2017 year BB

Hedge funds caught short by Provident Financial squeeze.

Reuters - UK Focus 27th February 2018.

14 funds had large short bets at Mondays close - FCA

Lansdown Partners, Pelham, AQR among most exposed -FCA

Hedge funds were caught out by a big short when the British sub-prime lender revealed plans to shore up its balance sheet on Tuesday, triggering a squeeze which drove a near 90 percent spike in its share price.

Provident's 331 million pound ($462 million) fully underwritten cash-call was smaller than the 500 million pounds some had expected, catching a number of hedge funds on the hop and potentially exposing them to losses on their trades.

At Friday's close, around 12 million shares in Provident were out on loan, a proxy for demand from hedge funds betting the shares would fall in a so-called short trade, data from Astec Analytics showed.

Lets hear it for them!

Publication of a Prospectus

I don't understand ! I understand the short squeeze but I'm surprised the share price has risen so much.

The rights issue came in at two-thirds the value that was being mooted which enables their capital ratio to have some headroom.

But then they are going to reinstate the dividend in 2019. It seems to me that this leaves them rather leveraged in the event profits do not deliver and they will have the bonds to refinance in due course as well.

It seem to me there is alot of trust profits are going to be delivered as promised

A bit of 'whore's drawers' this morning - its already ranged a quid.

have sold yesterday, to much debt . M fool avoid also BB

RNS out this morning and now I understand price action.

Woodford has bought another 2m shares. Perhaps not all yesterday but over the last few days or weeks.

So, he's supporting the price and causing the short squeeze.

I think this is really dangerous. He's got 24% now. At 30% he won't be able to buy any more.