Odey Asset Management increases stake in Plus500
While Plus500 scrambles around to unfreeze customer accounts there's a bit of a battle being waged over their shares
Odey Asset Management have increased their stake to 19% to become the firm's largest single investor. This will be the second purchase of stock since the shares started tumbling. The price fell over 67% last week
The troubles at the broker has seen the vultures coming out with other hedge funds shorting the stock. One firm is short and looking for shares to hit 78 pence
I've been keeping half an eye on this fight because 1. It's an interesting battle, and 2. Because if the price gets hammered anymore I might fancy a dabble on longs. The FT report that around half of Plus500's business comes from the UK, which means the other half is mostly unaffected. The regulatory problems seem to just be one of paperwork, rather than anything dodgy going on so there is a good chance that the broker could recover from this. If they do it's unlikely to be a quick process so it's probably a trade to sit on for a while
Today the shares are trading at £3, having come off a bottom of £2.48 on Friday, and If it dips below £2 I might be tempted into a trade
Plus500 share price
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