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Billionaire Gets It Horribly Horribly Wrong On Hbos Bet

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http://ukpress.google.com/article/ALeqM5jU...8yc9hCm5ugT4mFA

Tycoon 'loses millions' on HBOS bet

5 hours ago

Billionaire retailer Mike Ashley has lost millions of pounds on a share bet on Halifax Bank of Scotland.

The Newcastle United owner placed a succession of bets late last year with spread betting firm IG Index that HBOS's share price would rise in the early part of 2008, according to the Daily Telegraph.

But the UK's biggest mortgage lender's stock has instead fallen by more than a third since the beginning of January - a slump said to have left the Sports World tycoon nursing losses running into tens of millions of pounds.

Mr Ashley gained £929 million in a single day from floating part of his sportswear chain in February last year. The reported losses contrast with the profitable investments he has made in rivals such as Umbro and Adidas.

HBOS has suffered amid concerns over the impact of the credit crunch and a slowing housing market, but was also the victim of unfounded market rumours over its funding last Wednesday.

This caused its share price to plummet almost 20% at one point and prompted intervention from the Bank of England and the City's watchdog, the Financial Services Authority.

Around 250 HBOS directors and senior staff snapped up more than £6 million worth of the bank's shares the day after the dramatic price collapse in a bid to shore up the stock.

Chief executive Andy Hornby led the way in what the bank said was a "demonstration of confidence" in the stock, splashing out more than £400,000 on 92,812 shares with his annual cash bonus on Thursday.

But the bank's share price has fallen to less than half the level of 12 months ago following the financial turmoil which erupted last summer, leaving HBOS with a current market value of £17.7 billion.

IG Index and Mr Ashley's Sports Direct International were unavailable for comment.

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Well done HPCers - you would have saw this comming over a year ago starting with the first subprime lenders going under in the US at the start of Jan 2007 [mortgage-implode-meter site], and would have guessed it would not be contained.

Just for once we were ahead of one of the richest business men in Britain. Pat yourselves on the back!

Edited by notanewmember

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Ahh, say no more. And all the gold bugs will be truly proud of me because as conspiracy theories go, this one

will beat all theirs hands down.

So Mike Ashley, who floated his company on the stock market to all the willing hedge funds and big city slickers

only to see the company's share price plummet, and I mean plummet, could just be getting their own back. If

they knew about this informatoin, I'm sure causing rumours and shorting HBOS, knowing he was long, would be

their just rewards. Revenge is a dish best served cold. If he's closed his position the pressure is likely to ease

on HBOS. So in true gold bug fashion, fill your boots with HBOS. Obviously all the above is only a theory. But as

theories go not bad, eh.

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Again this demonstrates the best way to lose money spread betting. Putting cash on your hunch!

It's all about price, price and price. No one has any idea what is going to happen in 3 months time. No one!

The great thing is that the more cocky you are the more your'e going to lose and someone has to fund my winnings so Mr Ashley, thanks very much.

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I have the same feeling on the weekends when I have had a few beers, the longer I stay the more I think the bar will remain open all night, then the reality of kicking out time comes and we make our way home with a hangover for the morning.

The difference between True Love (House Price Inflation) and Herpes (Read Debt) Herpes lasts forever.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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