Star revealed its world of pain on Monday, downgrading earnings forecasts and talking about asset writedowns and tax changes, all of which put the frights through investors.Oscar Colman
While it’s barely had a chance to talk to its lenders about covenants, waivers and the like, institutions have been quick to bake in expectations of a capital raising.In markets land, that’s a free hit for the hedge funds, who piled bets against the casino operator again on Tuesday. About 65 million shares changed hands, or 7 per cent of the register, as the stock plummeted. The big insto desks, UBS and Macquarie, led the trade. [Macquarie also topped market share on Monday].
It’s not the time to be carrying too much debt, with investors skittish about rising rates and costs, and a softening consumer.