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Several sub 14p 4 and 5 figure trades today.

 

Yes, I know that's peanuts in terms of market cap but things have been very, very quiet on the shares front over the last couple of weeks.

 

I assume it's nothing to do with next week being the admin deadline....?

Edited by trousers
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Several sub 14p 4 and 5 figure trades today.

 

Yes, I know that's peanuts in terms of market cap but things have been very, very quiet on the shares front over the last couple of weeks.

 

I assume it's nothing to do with next week being the admin deadline....?

 

I think it's just someone anticipating a bad result tomorrow, if we lose the SP might take a giant hit come Monday morning.

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By the way, WH Ireland shares have slumped from 72.5p on Tuesday to 59p today.

 

Their preliminary results were published this week - Loss before tax of £4.02m (2007: profit of £3.93m)

 

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=2119957&source=RNS

 

 

If I have a business that I want to run into the ground, Lowe will be my main man. His track record of destroying shareholder value is remarkable.

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If I have a business that I want to run into the ground, Lowe will be my main man. His track record of destroying shareholder value is remarkable.

 

I think with the global economic slump most shares are hitting rock bottom, still we can always blame Lowe for this worldwide downturn :rolleyes:

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I think with the global economic slump most shares are hitting rock bottom, still we can always blame Lowe for this worldwide downturn :rolleyes:

 

So why have SLH shares been falling when the FTSE has been rising?

 

I can provide a graph if you like.

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If I have a business that I want to run into the ground, Lowe will be my main man. His track record of destroying shareholder value is remarkable.

 

Although, to be fair, there aren't many financial services companies making a mint at the moment

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Please do but for the last year and not for the last three weeks, thanks.

 

chart_producer.php?type_symbol=indices_ftse&style=bar&scheme=black&dura=434&width=470&volbars=n&ind1=macd&ind1p1=26&ind1p2=12&ind1p3=9&ind2=sstoc&ind2p1=14&ind2p2=3&ind2p3=0&ind3=rsi&ind3p1=14&ind3p2=0&ind3p3=0

 

graph.cgi?code=le:cotn:SOO.L&yearsback=1&time_step=1&width=610&height=400&rebase=on&

 

Both SLH shares and the FTSE 100 followed a similar downward trend between May 08 and Nov 08, but since then the FTSE has more or less bottomed out. Compare this with SLH shares and over the period between Nov 08 and Mar 09 the contrast is stark. SLH shares have dropped from 26p to 13p - a 50% fall. The FTSE 100 by comparison has only dropped by a percent or two.

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chart_producer.php?type_symbol=indices_ftse&style=bar&scheme=black&dura=434&width=470&volbars=n&ind1=macd&ind1p1=26&ind1p2=12&ind1p3=9&ind2=sstoc&ind2p1=14&ind2p2=3&ind2p3=0&ind3=rsi&ind3p1=14&ind3p2=0&ind3p3=0

 

graph.cgi?code=le:cotn:SOO.L&yearsback=1&time_step=1&width=610&height=400&rebase=on&

 

Both SLH shares and the FTSE 100 followed a similar downward trend between May 08 and Nov 08, but since then the FTSE has more or less bottomed out. Compare this with SLH shares and over the period between Nov 08 and Mar 09 the contrast is stark. SLH shares have dropped from 26p to 13p - a 50% fall. The FTSE 100 by comparison has only dropped by a percent or two.

 

I bet Lowe wishes he'd accepted Crouch's 65p offer now...

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I think with the global economic slump most shares are hitting rock bottom, still we can always blame Lowe for this worldwide downturn :rolleyes:

 

 

Well while we are on the subject, I blame the bankers (wasn't Lowe at Morgan Grenfell and Deutsche Bank), the speculators (WH Ireland and London International Financial Futures Exchange), pen pushers and the regulators. So whilst I don't blame him specifically, solely and personally for the global economic slump, he and his ilk have a lot to answer for.

 

...... meanwhile, the real wealth creators are having to pay the price.

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chart_producer.php?type_symbol=indices_ftse&style=bar&scheme=black&dura=434&width=470&volbars=n&ind1=macd&ind1p1=26&ind1p2=12&ind1p3=9&ind2=sstoc&ind2p1=14&ind2p2=3&ind2p3=0&ind3=rsi&ind3p1=14&ind3p2=0&ind3p3=0

 

graph.cgi?code=le:cotn:SOO.L&yearsback=1&time_step=1&width=610&height=400&rebase=on&

 

Both SLH shares and the FTSE 100 followed a similar downward trend between May 08 and Nov 08, but since then the FTSE has more or less bottomed out. Compare this with SLH shares and over the period between Nov 08 and Mar 09 the contrast is stark. SLH shares have dropped from 26p to 13p - a 50% fall. The FTSE 100 by comparison has only dropped by a percent or two.

 

That doesn't prove the footsie is rising which you originally quoted, more to the point it is still dropping.

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Well while we are on the subject, I blame the bankers (wasn't Lowe at Morgan Grenfell and Deutsche Bank), the speculators (WH Ireland and London International Financial Futures Exchange), pen pushers and the regulators. So whilst I don't blame him specifically, solely and personally for the global economic slump, he and his ilk have a lot to answer for.

 

...... meanwhile, the real wealth creators are having to pay the price.

 

Was Lowe at Barclays, HSBC, Northern Rock et al? Seems Lowe is now a scapegoat for everything bad that happens.

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So why have SLH shares been falling when the FTSE has been rising?

 

I can provide a graph if you like.

 

Try Googling the term "beta correlation". There is very little correlation between SLH and the FTSE - if anything you should be looking at the AIM All Share but even there there's bugger all correlation. It's a football share, it's not priced like the majority of shares even in stable economic times, let alone in the current climate.

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That doesn't prove the footsie is rising which you originally quoted, more to the point it is still dropping.

 

Good point, but what the charts clearly illustrate is that SLH are doing considerably worse than most other companies.

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Try Googling the term "beta correlation". There is very little correlation between SLH and the FTSE - if anything you should be looking at the AIM All Share but even there there's bugger all correlation. It's a football share, it's not priced like the majority of shares even in stable economic times, let alone in the current climate.

 

Can't be arsed, but i'd appreciate it if you could provide a graph. The key period for me is since the credit crunch went public (October time). Saints have been in freefall since then - how does this compare with the AIM all share?

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Try Googling the term "beta correlation". There is very little correlation between SLH and the FTSE - if anything you should be looking at the AIM All Share but even there there's bugger all correlation. It's a football share, it's not priced like the majority of shares even in stable economic times, let alone in the current climate.

 

Thanks Jonah! Well, that's at least 20 seconds of my life I'll never get back. But, it did serve a purpose. I can now communicate with you in the same language, so, I have a questions for you -

 

I am curious about the relationship between correlation of two data return series (r1, r2) and the "beta" resulting from a bi-variate regression (r1=a+b(r2))...

 

Particularly I am concerned with constructing an "optimal hedge ratio" (expected return of a portfolio consisting of r1 and r2 equals zero) using these simple concepts...

 

Which would be better for constructing such a hedge, beta or correlation?

 

It is my understanding that correlation is the average linear relationship between two variables (r1, r2) and that a regression delivers a more robust "hedge value" as it takes into account a constant term that may have statistical significance. This would lead me to believe that the regression output of Beta would be more reliable (and also better in terms of descriptive measures, ie standard deviation).

 

Added insight would be appreciated.

 

:)

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Thanks Jonah! Well, that's at least 20 seconds of my life I'll never get back. But, it did serve a purpose. I can now communicate with you in the same language, so, I have a questions for you -

 

I am curious about the relationship between correlation of two data return series (r1, r2) and the "beta" resulting from a bi-variate regression (r1=a+b(r2))...

 

Particularly I am concerned with constructing an "optimal hedge ratio" (expected return of a portfolio consisting of r1 and r2 equals zero) using these simple concepts...

 

Which would be better for constructing such a hedge, beta or correlation?

 

It is my understanding that correlation is the average linear relationship between two variables (r1, r2) and that a regression delivers a more robust "hedge value" as it takes into account a constant term that may have statistical significance. This would lead me to believe that the regression output of Beta would be more reliable (and also better in terms of descriptive measures, ie standard deviation).

 

Added insight would be appreciated.

 

:)

 

 

Worries me too.

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Thanks Jonah! Well, that's at least 20 seconds of my life I'll never get back. But, it did serve a purpose. I can now communicate with you in the same language, so, I have a questions for you -

 

I am curious about the relationship between correlation of two data return series (r1, r2) and the "beta" resulting from a bi-variate regression (r1=a+b(r2))...

 

Particularly I am concerned with constructing an "optimal hedge ratio" (expected return of a portfolio consisting of r1 and r2 equals zero) using these simple concepts...

 

Which would be better for constructing such a hedge, beta or correlation?

 

It is my understanding that correlation is the average linear relationship between two variables (r1, r2) and that a regression delivers a more robust "hedge value" as it takes into account a constant term that may have statistical significance. This would lead me to believe that the regression output of Beta would be more reliable (and also better in terms of descriptive measures, ie standard deviation).

 

Added insight would be appreciated.

 

:)

 

My thoughts exactly!

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Actually, it's ok! I see my mistake, silly boy, so I shall correct it. I think it's worth straightening out the misunderstandings in case people continue reading it.

In my original post, I used "beta" in the sense of regression coefficient, not the specific CAPM sense of regression coefficient with the market.

 

In this sense, if I knew the true beta, it would be the variance-minimizing hedge ratio. That is, Y - beta*X would have the smallest variance of any portfolio composed of X and Y with weight 1 on Y.

 

In practice, you estimate beta. That makes it essential to consider the correlation coefficient as well. Suppose I am hedging a basket of stocks that has correlation 0.8 with the S&P500, and correlation 0.1 with a 10-year treasury bond. Say the standard deviation of the basket and the S&P500 are the same, and eight times the standard deviation of the 10-year treasury bond. That means the naive variance minimizing hedge is 80% of notional for both the S&P500 and the 10-year treasury; but the S&P500 is likely to be a very good hedge while the 10-year treasury is about equally likely to increase as decrease variance.

 

Phew, I hadn't realised what total tosh Jonah actually spoke until now, but at least it makes sense, but I think I can safely say that the above realisation clearly shows this!

 

:)

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Thanks Jonah! Well, that's at least 20 seconds of my life I'll never get back. But, it did serve a purpose. I can now communicate with you in the same language, so, I have a questions for you -

 

I am curious about the relationship between correlation of two data return series (r1, r2) and the "beta" resulting from a bi-variate regression (r1=a+b(r2))...

 

Particularly I am concerned with constructing an "optimal hedge ratio" (expected return of a portfolio consisting of r1 and r2 equals zero) using these simple concepts...

 

Which would be better for constructing such a hedge, beta or correlation?

 

It is my understanding that correlation is the average linear relationship between two variables (r1, r2) and that a regression delivers a more robust "hedge value" as it takes into account a constant term that may have statistical significance. This would lead me to believe that the regression output of Beta would be more reliable (and also better in terms of descriptive measures, ie standard deviation).

 

Added insight would be appreciated.

 

:)

 

Jonah, will you hurry up and answer, I'm biting my fingernails off here waiting for the answer :rolleyes:

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By the way, WH Ireland shares have slumped from 72.5p on Tuesday to 59p today.

 

Their preliminary results were published this week - Loss before tax of £4.02m (2007: profit of £3.93m)

 

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=2119957&source=RNS

 

Thanks for this info Trousers. An 8 million turnaround is not good news even in the present climate.

 

I am therefore wondering if this perhaps means it is less likely now that Lowe could put together a consortium of his WHI pals with a view to a post admin takeover, as genuinely feared by many on this forum?

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Thanks for this info Trousers. An 8 million turnaround is not good news even in the present climate.

 

I am therefore wondering if this perhaps means it is less likely now that Lowe could put together a consortium of his WHI pals with a view to a post admin takeover, as genuinely feared by many on this forum?

 

He could, but for all Lowes deficiencies i don't think he'd be that stupid.

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I bet Lowe wishes he'd accepted Crouch's 65p offer now...

 

I dunno if he does. I dont think Lowe sees this investment as anything other than an ego-trip, personal challenge. He inherited his position, he has wealth enough elsewhere to live well, he has no need for Saints other than personal pride... and that is what is dangerous.

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I dunno if he does. I dont think Lowe sees this investment as anything other than an ego-trip, personal challenge. He inherited his position, he has wealth enough elsewhere to live well, he has no need for Saints other than personal pride... and that is what is dangerous.

 

Must make a good living out of his pigs.

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I think the share price reflects what we all know - relegation means certain administration.

 

Whilst, because we can cull the wage bill, admin wont be straight away. Barclays will see that what is left of the team will stand no chance of promotion and whilst we are in League 1 we will never be able to pay back the overdraft so they will call it in.

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