FLT has corrected over 14% since NSW and the countries path to freedom became clear, this pullback feels like a classic case of “buy the rumour sell the fact” as opposed to the market expecting a Round 3 with COVID – however with the UK now registering over 40,000 cases per day we would caution that re-opening may not be as easy as many hope & expect. The recent move is no great surprise but around current levels we’re still 50-50 seeing better opportunities elsewhere. NB: this morning FLT has prices a $400m convertible note with a strike price of $21., Without going into too much detail, the equity hedge has been done at $21 for 3.5m shares and the usual outcome now is a lowering of volatility in the stock.
MM is neutral FLT
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