I think anybody longing LEI is "picking up pennies in front of a bulldozer". The amount of risk in this stock is massive IMO. It will probably take years to clarify the legal and reputational risks. OS Governments might sue them for heaps for those bribes - I would if I was a minister in a developing country.
Also what madness it is paying these huge dividends? Is LEI really independent of Grupo ACS - I doubt it, as they are dialing up the risk further. The further buying by Hochtief reminds me of QAN doing their buyback. I think ACS is in a risky situation and creates the huge risk of a massive seller appearing too.
Always happy to short LEI for a quick trade, but a really nasty ann could come at any time. I think it should be trading at 5x - not around 10x.
I think I am stating the obvious here - good luck - I hope any longs know what they are doing - plenty of other stocks to invest in that do not entail the same risk.
I'm going to close my short some time today, and have already made a stack - so I don't care if some retail traders or investors buy or sell today. I just think You should consider the risks I am mentioning if you think somehow LEI is too big to fail.
LEI Price at posting:
$17.00 Sentiment: ST Sell Disclosure: Held