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Post by dreamboatcruise on Mar 11, 2015 13:45:22 GMT -5
Unfortunately,these firms have buried in the new account document disclosures that just simply having margin on the account (even if you never use it) allows them to borrow your shares at will - they can lend, relend, hypothecate, rehypothecate, pretty much anything they want. They also don't pay you anything for it. Guess I need to start reading the fine print. Just talked to the lending program people at Schwab. They CLAIM that if there is no margin balance it means they cannot borrow shares without paying the owner. They also say that demand for MNKD shares is low right now and they aren't enrolling new shares in the program... darn it, I just went through the hassle of transferring them from Ameritrade for that specific purpose. |
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Post by petech on Mar 11, 2015 14:02:22 GMT -5
Interesting. I went through a similar exercise and the folks at Fidelity haven't been able to find people to borrow my shares starting on the 9th. The first tranche went though (which I ironically and unfortunately loaned out apparently the exact day the Goldman "research" was published)...but this second tranche....no interest. I also note that they (Fidelity) dropped the rate they charge out to the shorts to 29.5% from 31.5%.
And Schwab isn't finding short sellers either....
And the short interest is over 90M....
Have the shorts finally started to break?
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Post by gomnkd on Mar 11, 2015 14:12:47 GMT -5
Someone mentioned about MNKD short being similar to Tesla's. I found a remarkable correlation between Tesla revenue and stock. Take a look at this chart. If MNKD were to go higher, we need to show some sales. The stock may lag the sales first, but will eventually catch up.  |
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Post by pmikeks on Mar 11, 2015 14:54:37 GMT -5
Guess I need to start reading the fine print. Just talked to the lending program people at Schwab. They CLAIM that if there is no margin balance it means they cannot borrow shares without paying the owner. They also say that demand for MNKD shares is low right now and they aren't enrolling new shares in the program... darn it, I just went through the hassle of transferring them from Ameritrade for that specific purpose. I just got an email from Schwab asking me to sign up on their program. Here is their pitch. We're writing to offer you a unique income opportunity through Schwab's Securities Lending Fully Paid (SLFP) program. Enroll in SLFP, and you can receive monthly income for lending securities to Schwab that are in high demand by other investors. Benefits of the SLFP program include: You can sell loaned securities at any time. You can end loans at any time. Income accrues daily and is paid monthly. You'll receive 100% collateral for loaned Program is at no cost to you |
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Post by pmikeks on Mar 11, 2015 15:01:32 GMT -5
I own the shares out right but very doubtful I will assist in people shorting the stock. I have a sell order at $100 per share and willing to wait several years, although I may raise the price I'm willing to sell. I see very limited value in helping the opposition.
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Post by dreamboatcruise on Mar 11, 2015 15:04:24 GMT -5
For what it's worth the Schwab guy told me that he expected that they'd make an offer for my MNKD shares next week. Is it possible that they Schwab has knowledge of future bear raids and has their lending group line up shares ahead of time? or this guy simply trying to appease me since I told him I'd just gone through the hassle of transferring shares in order to get them loaned out?
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Post by cybergym66 on Mar 11, 2015 15:31:17 GMT -5
For what it's worth the Schwab guy told me that he expected that they'd make an offer for my MNKD shares next week. Is it possible that they Schwab has knowledge of future bear raids and has their lending group line up shares ahead of time? or this guy simply trying to appease me since I told him I'd just gone through the hassle of transferring shares in order to get them loaned out? How about being a nice Horned Lizard (was I close?) and give us a heads up when they come calling! I need to buy some Jan '17 $3 (missed out yesterday!) Thanks! |
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Post by dreamboatcruise on Mar 11, 2015 16:06:28 GMT -5
For what it's worth the Schwab guy told me that he expected that they'd make an offer for my MNKD shares next week. Is it possible that they Schwab has knowledge of future bear raids and has their lending group line up shares ahead of time? or this guy simply trying to appease me since I told him I'd just gone through the hassle of transferring shares in order to get them loaned out? How about being a nice Horned Lizard (was I close?) and give us a heads up when they come calling! I need to buy some Jan '17 $3 (missed out yesterday!) Thanks! Officially we prefer Jackson's Chameleon (Trioceros jacksonii) but we can go with Horned Lizard among friends. en.wikipedia.org/wiki/Jackson's_chameleon I'll certainly post an update if/when and what they offer. |
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Post by kc on Mar 11, 2015 16:57:18 GMT -5
That was on page 57 in small print paragraph 14. goyocafe... they are supposed to only be able to borrow up to an amount equal to the outstanding margin balance you have. Just because it is a margin account doesn't give them that right... at least that is the way I understand it. Maybe it was just a coincidence. BTW... when did they borrow the second chunk and at what rate. I just moved some shares over to Schwab myself. Unfortunately,these firms have buried in the new account document disclosures that just simply having margin on the account (even if you never use it) allows them to borrow your shares at will - they can lend, relend, hypothecate, rehypothecate, pretty much anything they want. They also don't pay you anything for it. |
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Post by petech on Mar 11, 2015 18:14:03 GMT -5
Spoke too soon. My new shares are lent out. Demand, I am told is softening. But so far still 21% for the good guys.
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Post by BD on Mar 12, 2015 7:24:49 GMT -5
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Post by nemzter on Mar 16, 2015 18:20:41 GMT -5
Fidelity still holding up at 21%, rumors on YMB saying that it may go down, anyone know where Schwab's at?
Thanks!
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Post by chicagpete on Mar 16, 2015 19:16:35 GMT -5
Dropped me from 14 to 12percent this morning
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Post by kc on Mar 16, 2015 21:00:10 GMT -5
Fidelity was at 21% this am
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Post by petech on Mar 16, 2015 21:51:04 GMT -5
Fidelity was also at 21% this PM as well  Coincidentally I called Schwab today to ask them about their program (always want to see the underlying documents and compare against). They told me they had no need of MNKD shares (not borrowing). Nevertheless, I got their agreements and they are very similar; nothing I read to make me want to favor one versus the other from a risk standpoint. This functionally-a-DRIP is wonderful. At the end of this month, I get free shares. |
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