The potential profit from your bearish bet is close to 18 million euros
MADRID, 12 Ene. (EUROPA PRESS) –
Gotham City Research has finished closing its short position on Grifols after the company once again registered falls on the stock market on Thursday, coinciding with a conference with investors and analysts in which the company offered its explanations against the fund’s accusations.
The firm built a short position of 0.57% of Grifols’ capital just before publishing its report on Tuesday raising questions about the company’s governance, its financial statements and its leverage.
Gotham informed the CNMV on the 10th that it had unwound its majority position, leaving only a residual of 0.06% of Grifols’ capital, equivalent to just over 255,00 shares. Now, the fund has again informed the supervisor that it has completely eliminated the position.
As Europa Press has been able to calculate, and taking as a reference the closing price on Monday – before the report was published – of 14.24 euros, the value of that 0.06% of that short position was 3.64 million of euros. If the position was liquidated at Thursday’s closing price of 9.9 euros after the conference call, the potential profit for the fund would have been 1.11 million euros.
To this figure we must add the potential profit that Gotham earned when it undid the bulk of its short position, up to 16.7 million euros, raising the total profit from the operation to almost 18 million euros.
This profit figure is theoretical and could be higher or lower depending on the price at which the purchase and sale was carried out, as well as other expenses, such as the leverage of the operation or the consideration offered to the shareholders from whom the shares were taken. to make the short sale.
Grifols fell 16.17% on Thursday after failing to convince analysts with its explanations in an attempt to dismantle Gotham City Research’s accusations in its report. In this Friday’s session, the price fell another 12.54%, until approximately 11:00 a.m., standing at around 8.7 euros per share.
In the conference before investors, the CEO of Grifols, Thomas Glanzmann, indicated that the company is working to respond to the information requests that the CNMV sent them on Wednesday in relation to the Gotham City Research report, for which it has within a period of ten days.
In the request, the supervisor asks the company’s management team for detailed information on various aspects of its accounting, including Grifols’ links with the Scranton company.
