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Post by kc on Oct 1, 2014 11:53:49 GMT -5
If you can lend at 8% and buy on margin at 4% you make a 4% spread.
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Post by joeypotsandpans on Oct 1, 2014 13:27:43 GMT -5
Wondering how many others like Joey and Brother Dave are happily taking that "juicy" 8.5% return and enabling the shorts take the share price down. I raised the question in an earlier thread whether Big Al was lending out his shares and earning a big fat $100mm per year. If so, he is a major reason that the short interest is so high AND he can put and end to the price manipulation and cause a huge short squeeze any time he wants by wihdrawing the ability to lend out his shares. Trend Trend, just so you understand, true longs who have been and are in this for the long haul don't worry about the shorts and their issues and/or problems. On the contrary, the term the market is efficient (although there are a lot I'm sure that don't put any credence to that theory because of the history in this particular stock but IMO are blinded by their emotions) will eventually come to pass in time as the fundamental story continues to play out. So the mindset is if you have the shares in a non margin account and know you're going to hold them until the true valuation comes along, why not collect the interest yourself as opposed to the house that is holding your shares. I would recommend every long to do it if possible as you are passing up free money. Yes it will increase the shares available to short, however, as brother Dave and I refer to it "it just leaves them (the increasing SI) more rope for the eventual hanging", it's just prudent financial business sense to take advantage of the high rate they have to pay to keep their position as more shares are bought and accumulated by longs. As the fundamentals continue to get realized, the day of reckoning will eventually come to pass is our view...keep in mind one can elect to change back at any time and discontinue allow them to be lent out which is what you allude to in your post with reference to your theory (which I gave my opinion on in the other thread) about Al...only I believe you originally thought that Al was short himself as opposed to lending to the shorts. |
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Post by trenddiver on Oct 1, 2014 14:07:32 GMT -5
Joey,
I raised both possibilities in my prior posts. BTW on that note I did a little research on those previously discussed issues and spoke to a former employee/colleague of Al (not at Mannkind). He said Al would have fired anyone who shorted the stock and does not think there is any possibility that Al would short the stock, however he might lend the stock if he was getting enough interest.
Trend
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Post by mnholdem on Oct 1, 2014 18:19:05 GMT -5
Some revised valuations by investment advisors are likely after the next earnings call, especially after we learn more about the milestone payments and greater detail on how the 35/65 share will be calculated.
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Post by BlueCat on Oct 1, 2014 18:23:52 GMT -5
Joey, I raised both possibilities in my prior posts. BTW on that note I did a little research on those previously discussed issues and spoke to a former employee/colleague of Al (not at Mannkind). He said Al would have fired anyone who shorted the stock and does not think there is any possibility that Al would short the stock, however he might lend the stock if he was getting enough interest. Trend That (the firing part) is refreshing. And sensible. Who would hire someone for their company that is financially invested in its failure? Duh! |
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Post by joeypotsandpans on May 1, 2015 17:10:11 GMT -5
My pizza guy is a hard working individual who I have known for quite a few years, back in 2012 we were talking and he knew I invested in the markets...he asked me at the time, hey Joey if I gave you 10k to put away for my daughter who will be going to college in about 5 yrs. or so what do you think we could turn it into...I said what if we could double it by then, he said really? Well the next thing I know he sets up an online account and wires in 10k...that particular account today sits at $41,780.91, I say that particular account because since then he has opened another two custodial accounts which are up on a relatively comparable basis. So what's the point you ask, the point is not to "brag" about how much of a return I have been able to manage for him (btw, I have never asked for one cent as I love this man like a brother), the point with reference to the title is that not one day has he ever read an article or message board. He gets up and goes to work and believe it or not never even checks his account unless I come in for a bite and show him on the mobile app where his account stands. I never really thought about it until another member on this board who knows both of us and can vouch for this post said to me after a typical roller coaster day "you know what's beautiful about the whole thing....he has no clue, he just goes about his life and never reads any of the BS about this". Yes he is shielded from the likes of Adam F. and tarot card readers and pedophiles etc., Josh Schimmer? Tourboohoo? Karp to him is a fish...etc.So why write this post? Well, today's wasted space from Adam F. is a day I wish I also was ignorant to this POS of an excuse of a human. I am not one to let the emotions get the best of me as over 15 or so of my friends, family, etc. who have followed me into this investment would tell you. So here is why his particular article hit me the way it did today, he states that "the blame of course lies with Mannkind" with reference to "their bloated" balance sheet. Yes he is blaming MNKD for the expenses incurred by two CRL's (which he terms as rejections btw) while he knows full well the circumstances behind those CRL's. Then he quotes 1 I repeat 1 analyst which allays to his thesis of valuation and where the price is and where he suggests it is going. So what about the pizza guys that read his drivel and reap substantial losses along the way due to erroneous and irresponsible journalism. Who's looking out for them, that's what I want to know! I hope CREW really pursues this issue until he has to pay some restitution and do at least 5yrs. of community service. Btw, the same person who woke me up to what a great life my pizza man has, that same person has been donating to CREW on an annual basis....thank you G! I thought today was a good day to bring back this oldie but goodie, why one may ask? Because when the phone-o-meter hits half a dozen calls in one day it reminds me of my pizza guy who remains oblivious to the noise etc. Now in another thread someone asked if "longs are concerned" because it has been a year and the price is down 60%...well by the same token, SI is up 50% and climbing....so my answer is I would probably have been long gone if SI was down with the s/p but just the opposite and one of several reasons why I'm here as the rubber band continues to get strettttttttched. It wouldn't surprise me to see the 4/30 SI near or at the century mark either....the shares that showed up as available to short were IMO from the sell off in the overall biotechs not from any substantial covering (yet)... although getting closer as each day passes again IMO, and why you may ask? because it usually happens when the phone-o-meter starts ringing off hook, now excuse me while I go get a nice chopped salad at my pizza guy's place  |
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Post by joeypotsandpans on Jun 8, 2015 19:47:01 GMT -5
Update on "my pizza guy", he continues to put money to work picking up another $7.5k worth this am as AF's editor takes on the Washington Post. On another note, another buddy "Brother Dave" decided to transfer his shares out of one brokerage firm that was not paying up for lending his shares out so he transferred to Fidelity where they opened him up and started paying him 8.5% on his shares, yesterday they raised it to a 9% return as he sits and waits on his MNKD investment. I spoke with "Brother Dave" yesterday, so in essence the conversation went a little bit like this..."I decided to move my account because xxxx!! were lending them out and I was getting squadoosh, moved to Fidelity and now getting 8.5%+, they raised it today so guess the shares are getting a bit tighter to find. Don't mind extending the rope/noose a little bit So for those that aren't getting any return you may want to check and see where you're at and if they (firm holding your shares) are using them to make $$$ off of your hard earned shares. Of course if you're in a margin account they can do what they want, but if not, sure hope you're getting additional ROI while your shares are parked. The other side to this is the borrow rate is somewhere between 14-17% these days for Mr. Shortie...which brings me back to that DTC conversation....yesterday as they walked it down a few more cents with an anemic approx. 3.5m shares, if we were at roughly 15 trading days to cover before then they are now staring at getting closer to 20 trading days as the shares (rope, noose, float, whatever you want to call it) continue to tighten up. Consider this for a moment, on 4/15 the low post adcom @ 5.92, volume traded on 9.238mill shares, yesterday that low was tested on a mere 3.265mill shares, essentially 1/3 the volume. That is why they (broker) are paying almost 10% for your shares. I use to have fun with Ginomazzie on YMB, yesterday he posted a sarcastic thread titled something like "can you believe it's under 6", I really wanted to respond "can you believe they are continuing to pay almost 17% to borrow?" well you get the idea ....enjoy your day!! Was talking to "my pizza guy" last week, and thought of this thread as we continue to springboard off the lows of 3 weeks or so ago....from his E-Trade account I pulled the monthly return totals: See your monthly and quarterly total returns: YTD JAN FEB MAR APR MAY JUN 17.34% 21.74% 2.68% -20.23% -17.48% 20.72% 18.13% - - - - - - so rather than try and time the market, for some the buy and sleep through it works just as well .... also, "brother dave" and I had a few musings about the interest we thought was so nice back when I posted this. G, nice score on those Jun5 calls you picked up at .13!! Petey, glad to see how much you learned in such a short time, and to all the others that had the conviction to add when others were capitulating, a little BTO for you this evening: www.youtube.com/watch?v=99lyU5N--f8and Baba, here is something I bet you didn't know...or knowing you, maybe you did The lyrics for the song tell of the singer meeting a "devil woman" and she giving him love. The chorus of the song includes the song's famous stutter and speaks of her looking at him with big brown eyes and [saying] 'You ain't seen nothin' yet. B-, b-, b-, baby, you just ain't seen na, na, nothin yet. Here's somethin' that you're never gonna forget. B-, b-, b-, baby, you just ain't seen na, na, nothin yet.' The guitar riff heard throughout the song's chorus appears to be an homage to the riff from "Baba O'Riley" by The Who. The riff follows a 1-5-4 in the key of A (A5, E5, D5), while the riff in "Baba O'Riley" is the same 1-5-4 riff, but in the key of F (F5, C5, Bb5) and both songs place their chords on the same beats in each bar where played. However, the melody for each song is totally different. |
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Post by cretin11 on Jun 8, 2015 21:14:23 GMT -5
Good call on the chord progression similarity between the BTO and Who tunes there!
And I sure hope you are correct that the BTO song is prophetic for MNKD's share price...
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Post by kball on Jun 8, 2015 22:09:37 GMT -5
Good call on the chord progression similarity between the BTO and Who tunes there! And I sure hope you are correct that the BTO song is prophetic for MNKD's share price... Reminds me of a joke. Q) What do you call those pushy people always wanting to hang out with musicians? A) Drummers. |
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Post by mnkd4ever on Jun 8, 2015 22:22:09 GMT -5
Nice -been a drummer for a long time and I love that one...
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