AA shares hit all-time low

Short-sellers expect further drop
AA shares hit all-time low
MOTOR & FLEET
By Terry Gangcuangco
07 Feb 2018
Insurance and breakdown provider, The AA, whose former executive chairman Bob Mackenzie reportedly lodged a tribunal claim last month, is facing further trouble – this time its shares have fallen to an all-time low, and short-sellers are circling like sharks.    

A report by The Telegraph said the roadside assistance firm is among the top 15 most shorted stocks on the FTSE 250, with short-sellers – those selling stocks they only borrowed – projecting a further drop even after Monday’s record low. Yesterday shares for the breakdown cover provider slid as much as 5.1%.

As for the short-selling, nearly 9% of the insurer’s shares are currently out on loan.

New chief executive Simon Breakwell previously unveiled plans to review the business, with a new strategy likely to be announced in the first half of the year. Last November rival HomeServe snapped up the AA’s home emergency unit, with customers and engineers to be transferred in May 2018.


Related stories:
It’s official: Simon Breakwell is AA chief executive
Claims that “Clarkson” style altercation with insurance boss led to firing

 
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