Mike / Anyone,

The Regus story seems to become more fascinating by the day.

Briefly, if I understand the situation correctly, Evil Kneivel aka Simon Caukwell has called Regus a short from January, when it was about 10p.

Since then regus has gained in value, and is now worth 38p, with Simon calling it a short as it continually increased. Regus have complained to the FSA about Simon's comments, and I believe, threatened legal action.

His interest is in their accounts, and whether Regus are in receipt of payments from a company called Alchemy, which I think they have declined to comment on!

The really interesting bit (IMHO) is that two of the biggest holders of Regus are spreadbetting companies! This means of course that the rise is price has been driven by speculators trading on margin, rather than solid buying of the shares.

My question is what happens (or is likely to happen) next?

It would seem that if the margin speculators decide to bail, the spreadbetters will have to offload into a reluctant market, and that could cause it to fall of a cliff.

I have been considering a fairly large short, as I cannot see RGU climbing much higher, so could control with a reasonable stop loss, and surely the risk is limited from here?

My question is to Mike, and anyone else that has an opinion, what do you think will happen?

All replies welcome, as I can see this as an opportunity in the making.

alex,

It seems that referring to the ADVFN thread is our only choice!

Sad, because I thought that AM would have better results than this.

They only seem to be interested in their traders, yet in this case surely regus could be traded?

Andy FWIW - says short to me, run up on hot air - house of cards - would you 'invest' in RGS?


ST

ST,

No I agree with your comments, will probably short tomorrow, with a fair stop loss just in case!

I really can't see RGU climbing much more, in fact i'm surprised it's got so high.

I bet old EK is adding to his short position!

Cheers