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Post by dreamboatcruise on Jun 15, 2015 11:08:48 GMT -5
91.9% interest to borrow MNKD shares? I am not sure I understand those types of numbers. The conspiracy theorist in me wonders who has the most to gain. Who gains if MNKD fails? The Status Quo? And what is your theory on why someone wanting MNKD or Afrezza to fail would think that shorting the stock would facilitate that? I've yet to hear of one patient or doctor citing low share price as a concern about using Afrezza.
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Post by Deleted on Jun 15, 2015 11:09:39 GMT -5
91.9% interest to borrow MNKD shares? I am not sure I understand those types of numbers. The conspiracy theorist in me wonders who has the most to gain. Who gains if MNKD fails? The Status Quo? its just traders bumping the rate up.. no conspiracies.. even @ 100% borrow rate, at the current share price 6.20, some one borrowing only pays 1.7 cents per share per day in interest. thats not much considering the volatility..ofcourse would depend on the trade
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Post by BD on Jun 15, 2015 11:10:02 GMT -5
For any of these share lending programs, do you have to have a margin account or can it be a cash account and are the only places to do this Fidelity, Schwab & IB? Is it true that you cannot lend shares from an IRA account? Thanks, Not sure if those are the only ones, but can verify that Ameritrade does NOT have a paid lending program. Not sure whether they lend out shares from margin accounts that they don't pay for. TDA has specifically told me that they do lend out shares from margin accounts, provided the accounts are carrying a margin balance. If the margin balance is paid off, any shares out on loan are returned, presumably pretty quickly.
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Post by peppy on Jun 15, 2015 11:39:18 GMT -5
Dreamboat: I have no huge theory. Change is slow when it involves changing the way things are done. 2Seek: Thank you for showing me the break down, of 91% a year.
I would think the pump makers, the pen makers, the insulin long and short acting producers, glucose lowering pharma (like metformin) would have the most to lose if and or when Afrezza becomes standard of care.
I have watched a fair share of, "Who done it?" in my life. Perhaps too many.
I believe Spiro's fast glucose levels are real. Fasting glucose levels do not get better than that and he is happy. That is the important part. Not what the doctors want. What the patients want. The patients want to be happy. I'll stop now.
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Post by kc on Jun 15, 2015 12:53:31 GMT -5
I bet they do lend out as they know how the game is played. It is in the fine print of their agreement which nobody reads and see Ameritrade gets away with it. They know what happens if a client needs to sell in that they replace the security with more from another client. They are not dummies.
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Post by bobw on Jun 15, 2015 16:05:48 GMT -5
I bet they do lend out as they know how the game is played. It is in the fine print of their agreement which nobody reads and see Ameritrade gets away with it. They know what happens if a client needs to sell in that they replace the security with more from another client. They are not dummies. I read the fine print for Fidelity's share lending agreement and margin agreement and it is not in the fine print that they can lend your shares without your knowledge if you are are not carrying a margin balance. In fact, it specifically states that they cannot lend your shares unless you are carrying a margin balance. They do not own your shares, so they cannot lend them out. When you have a margin balance, the rules change because they then have a lien on the shares. There are very specific rules that brokerage houses must follow regarding commingling client shares, to protect account holders in the event that the brokerage declares bankruptcy. Lending your shares would be tantamount to commingling. They would be breaking the law by lending your shares without your knowledge.
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Post by gwb on Jun 15, 2015 17:07:46 GMT -5
bobw , I had Ameritrade and they would switch my account to margin , I would call and ask to be not in a margin account , and guess what a few weeks /month later , I had a margin account again . I could never find out if they took my shares . I believe KC is right , that they F you , and I think the rest of them do also. By the way I never borrowed a cent on margin , it was just to code the account , so they could steal . That's my experience with them, I could never find out the truth . So F them, I moved to Fidelity.
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Post by dallasfan on Jun 15, 2015 19:29:35 GMT -5
Should make it a point to set the trap on the shorts. August 1st...everybody make sure to get your account to cash status.
No more lending out shares. I think everyone together can trigger short covering. And when the short covering happens with the current short interest it will be phenomenal. In august there will be substance to back the rise.
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Post by Deleted on Jun 15, 2015 20:10:09 GMT -5
Should make it a point to set the trap on the shorts. August 1st...everybody make sure to get your account to cash status. No more lending out shares. I think everyone together can trigger short covering. And when the short covering happens with the current short interest it will be phenomenal. In august there will be substance to back the rise. Hope you have millions of shares available in your account
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Post by ezrasfund on Jun 16, 2015 8:18:57 GMT -5
I keep looking for an e-mail from Schwab, but it hasn't come. They are still loaning the shares and still paying 30%. Interactive Brokers said there were 1,300,000 shares available to borrow yesterday afternoon, but now we are back down to 100,000.
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Post by petech on Jun 16, 2015 8:25:45 GMT -5
Not sure how Schwab works with the email you are looking for; but if it is something you want to get, I hope you get it. For my part, I am still waiting for the shares returned on Friday to get lent out again. Again, Fidelity told me the demand/rate is weakening, so I would not be surprised if I get a lesser amount of total interest payment when all shares are lent out as the rate fall may more than make up for the share amount (principal) balance going up. As they say, be careful what you wish for
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Post by tmann on Jun 16, 2015 8:41:17 GMT -5
Can anyone one tell me what happens in the event a borrowr of your stock used in a short, MNKD say, goes broke and is unable to return the stock or pay for it?
Do you have recourse to the broker? Or are you up the feces creek w out a paddle?
(I know the obligation is supposed to be covered, is it always though? Say when the stocks used to secure the stock are counterfeit, or valueless for other reasons)
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Post by ezrasfund on Jun 16, 2015 9:01:20 GMT -5
You are lending the stock to your broker, not the short seller. The broker lends to the short. Schwab and others put cash collateral in your account every day. The risk that your lending broker goes bankrupt is slight, and you still have the collateral. There is a fuller discussion elsewhere in these threads.
The e-mail I have been expecting is the one telling me that the lending rate is going down or my shares have been returned. I am happy not to get it. I guess tongue in cheek comments are hard to convey in a post without an emoticon.
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Post by kc on Jun 16, 2015 9:32:21 GMT -5
I would have to go back and read my legal documents but I believe that If the Short went bankrupt that it is Fidelity's problem. My problem would be if Fidelity went bankrupt. I don't see Fidelity going bankrupt but than again I have Lehman Bro's shares worth 0.0. Can anyone one tell me what happens in the event a borrowr of your stock used in a short, MNKD say, goes broke and is unable to return the stock or pay for it? Do you have recourse to the broker? Or are you up the feces creek w out a paddle? (I know the obligation is supposed to be covered, is it always though? Say when the stocks used to secure the stock are counterfeit, or valueless for other reasons)
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Post by ashiwi on Jun 16, 2015 10:10:05 GMT -5
Fidelity just lowered the interest rate for shorts to borrow from 46% to 39.5%
I would expect the interest on the loaned shares to go down at some point today. Still at 32.75% as I type this. Apparently the shorts are lightening up a bit. Just wish it would reflect it in the share price.
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