One of the interesting problems out there is that we do get cases like this. Where if the guy’s a crook he’ll be doing the one thing and if he’s honest as the length of an Icelandic summer day he’ll be doing exactly the same thing. So, how to decide which he’s being?
A Hargreaves Lansdown investment expert who held shares in Sirius Minerals urged savers to stick with the mining business just months before it was plunged into a financial crisis that saw 75% wiped off its share price.
In an article on the website of Britain’s largest do-it-yourself investment service, Nick Hyett urged people to be patient as Sirius scrabbled to secure finance for its mine in Yorkshire, which will extract the fertiliser polyhalite.
Hyett said that although 2018 had been a “painful year”, with Sirius’s share price dropping, the company had had “significant successes” and “construction was well under way” on the mine. He added that thanks to research showing the benefits of polyhalite in agriculture, there “should be plenty of demand for what Sirius will eventually be producing”.
The share price jumped 2.7% on May 14 — the day the article was published. Since then it has plunged 75%, and closed last week at 2.9p. At their height, the shares were worth 15 times as much.
So, was he just talking his own book? Or did he really believe and have his money where his mouth was?
An interesting way to tell would be to ask what’s his position in the stock today….