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Post by harryx1 on Jun 4, 2015 11:04:27 GMT -5
Here's my question:
Is the lending rate going up because supply to lend is running out or is it going up because longs are recalling their shares and not lending them out again?
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Post by ezrasfund on Jun 4, 2015 11:04:42 GMT -5
I am assuming that when the short covering really begins there will again be plenty of shares available to borrow. I think the shorts may be waiting for the Friday scrip numbers just like we do. Those numbers and the buying to cover OpEx settlements (even weeklies?) should keep things interesting.
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Post by gestan on Jun 4, 2015 11:05:24 GMT -5
Sorry kc, that question was intended for you.
The 2013 TSLA story is very interesting...
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Post by dreamboatcruise on Jun 4, 2015 11:20:24 GMT -5
I am assuming that when the short covering really begins there will again be plenty of shares available to borrow. I think the shorts may be waiting for the Friday scrip numbers just like we do. Those numbers and the buying to cover OpEx settlements (even weeklies?) should keep things interesting. I would be a bit nervous with a short position going into ADA meeting. Let's face it, it may be a small chance that we get a surprise, but any surprise would be to the upside. There seems to be little expectation built in that SNY will make a big splash with Afrezza at the meeting.
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Post by bradleysbest on Jun 4, 2015 11:30:32 GMT -5
We can only hope more good news is coming!
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Post by savzak on Jun 4, 2015 11:31:05 GMT -5
An increase in demand does not seem to be consistent with a rise in share price. An increase in demand for shares to short would be consistent with a rise in the share price if they are trying to forestall a run. Of course, if that is the motive, and if the effort fails, they've only dug their hole that much deeper.
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Post by bobw on Jun 4, 2015 11:34:49 GMT -5
An increase in demand does not seem to be consistent with a rise in share price. An increase in demand for shares to short would be consistent with a rise in the share price if they are trying to forestall a run. Of course, if that is the motive, and if the effort fails, they've only dug their hole that much deeper. Wouldn't an increase in demand for shares to borrow push the price down? The entity borrows the shares and then sells them on the open market. This increases the supply of shares available to sell.
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Post by joeypotsandpans on Jun 4, 2015 11:41:40 GMT -5
The "word" I got was that the last couple of days there were some defaults on calls to deliver, but it has eased up a little...still the current situation is tenuous at best for the one's with the noose around their necks...as the price continues to rise after each close it should continue to put pressure on them same as when you're long on margin and the price is declining and you get those messages letting you know you need to either remit funds or liquidate oh yeah btw...it continues and it's a beautiful thing: Symbol: MNKD Availability: NAExchanges: NASDAQ
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Post by petech on Jun 4, 2015 11:48:51 GMT -5
Now the snide comment from the IB website makes sense. If I were at CS...I'd be a bit annoyed. To say the least. Great work, DBC.
Also, I called Fidelity about the rate...they told me that we shareholders actually get an average rate based on all of their contracts...so my 28.5% may not hold....but they said it is definitely trending up.
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Post by kc on Jun 4, 2015 12:01:51 GMT -5
Doubling down on the price. It makes no sense to me why but they still are betting against MannKind. With rising share prices they are paying more interest.
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Post by savzak on Jun 4, 2015 12:04:58 GMT -5
An increase in demand for shares to short would be consistent with a rise in the share price if they are trying to forestall a run. Of course, if that is the motive, and if the effort fails, they've only dug their hole that much deeper. Wouldn't an increase in demand for shares to borrow push the price down? The entity borrows the shares and then sells them on the open market. This increases the supply of shares available to sell. While it's certainly the case that additional shares shorted will act as a downward pressure on the share price, that downward pressure may be more than adequately countered by buy side pressure. Simply put, if the number of buyers at a given price point is greater than the number of sellers at a given price point, the price will go up. It makes no difference whether those sellers are shorts, traders or longs taking profits. Shorts in pain may well short more to try to contain the price appreciation, but if the longs (and maybe a few shorts who are covering) buy up their newly shorted shares and march onward, they're just left standing in a deeper hole.
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Post by kc on Jun 4, 2015 12:07:09 GMT -5
Here's my question: Is the lending rate going up because supply to lend is running out or is it going up because longs are recalling their shares and not lending them out again? They are doubling down thinking they can bring the price down with it and somebody is buy the shares up. Who? I don't know. But think about this. One could go out and buy $100,000 more of MannKind shares in the market place and than put the shares into the investment lending program and get 27% So they could have been buying since the $3.50 range all the way up. There are folks much smarter than we are who have been in this rodeo on other stocks and know how this plays out based on their past experience. So a wealthy player could be buying shares to put into the lending program for the 27% return. Look at Shake shack there are 0 shares available and the interest rate is 94.5%
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Post by ashiwi on Jun 5, 2015 10:53:36 GMT -5
Fidelity just raised the interest to the loaner to 29.25%
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Post by petech on Jun 5, 2015 11:59:36 GMT -5
GOOD LORD IN HEAVEN!! Plus we're over 6 right now....this is shaping up to be a FANTASTIC weekend!! I calculate the interest due to me daily....and I love strong Fridays like this because that interest payment is the same on Saturday and Sunday....
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Post by babaoriley on Jun 5, 2015 12:34:41 GMT -5
For now, things continue to swing in our favor, and it's about time. There will come a time (more precisely, a price) when potential longs feel the price is too expensive, at that point, the shorts will be able to drive the price back down, till the reverse happens. Obviously, the price of $3.50 was too good to be true for many and people began buying in earnest.
kc makes a fantastic point above regarding buying to loan, figuring that the rate will stay high for quite some time, due to all those shorts out there. At that kind of interest rate, and MNKD's future prospects looking at least good, well, that's a hell of an investment!! It never dawned on me that people might buy MNKD for the primary purpose of lending the shares, but why the heck not?
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