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Post by petech on Mar 20, 2015 12:41:20 GMT -5
I had a small amount of shares returned one day this week...that were immediately re-borrowed the next day. FYI, the day shares are borrowed, you get interest for that day...the day shares are returned...no interest. Makes me wonder why shorts don't just return all shares on Friday and re-borrow Monday? Anyway, Fidelity is paying way better interest so that's the much better route to go, if possible.
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Post by dreamboatcruise on Mar 20, 2015 14:03:15 GMT -5
Schwab is still paying me for the ones previously borrowed, but I transferred some other shares very recently and they have not offered anything for them. I'd be interested if Fidelity has borrowed more shares from anyone in last week... but perhaps no one has unborrowed shares over there. I moved mine to Fidelity on Monday when Schwab lowered to 12%. The transfer completed yesterday and were immediately borrowed at 20%. I was told that Fidelity requires a minimum of $100k in MNKD shares to be eligible. Can anyone tell me whether this is correct? |
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Post by petech on Mar 20, 2015 14:15:33 GMT -5
The only requirements I am aware of are below. So you could have less than $100K of MNKD stock as long as that isn't your only asset with them and the balance of assets meets the threshold. That said, you'll notice the PDF that I link to below says "generally" in front of the 250K requirement.  capitalmarkets.fidelity.com/app/item/RD_13569_22178.htmlProgram guidelines You must execute a Master Securities Lending Agreement (MSLA) with Fidelity. The MSLA discusses the rights of all counterparties and governs all of the loan transactions. It is a separate agreement from any previously executed margin agreement. Only securities that have been fully paid for or are in excess of any margin debit are eligible. You must have a minimum of $250,000 in assets with Fidelity at the time of enrollment. You maintain full economic ownership of the securities on loan and may sell the securities or recall the loan at any time. In the event of a default by Fidelity, you would have the right to claim the collateral from in the manner described in the MSLA. fidelityinstitutional.fidelity.com/app/literature/view?itemCode=948750&renditionType=pdf |
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Post by nemzter on Mar 23, 2015 15:41:20 GMT -5
Fidelity is still at 20% today, not sure why it hasn't gone down yet for the last few days, oh well ... enjoy$$$
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Post by goyocafe on Mar 24, 2015 12:54:48 GMT -5
Fidelity is still at 20% today, not sure why it hasn't gone down yet for the last few days, oh well ... enjoy$$$ You have to wonder if there's a catch? What are the odds you don't get your shares back? What if you don't, what monetary value do you get in return? According to the agreement, it seems they'll up the collateral to the previous day's close, but that's the end of their obligation. Not sure where that leaves a lender. |
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Post by petech on Mar 24, 2015 13:13:33 GMT -5
You have to remember that you're lending to Fidelity who is then on-lending to the ultimate (short) borrower. The default of the ultimate borrower doesn't affect you any more than one of my stocks stopping a dividend payment to me relives me of my obligation to pay my debts. You can check the balance sheet they give you but the borrower (a sub of Fidelity) is massive and has plenty of reserves.
The crack...as best I have found...is that if you have (1) a default by fidelity at the same time (2) MNKD has a massive runup, then you would hypothetically be stuck with the segregated cash account they have on your behalf at one of the big banks....but the cash would be based on previous day's closing price. Other than that, you're just worried about the solvency of Fidelity. Which I am not overly concerned with.
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Post by goyocafe on Mar 24, 2015 13:15:54 GMT -5
Thank you. That helps.
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Post by ashiwi on Mar 24, 2015 13:23:43 GMT -5
I think the catch is, that the price of the shares went down from the mid 7's to the low 5's. Lending our shares gives the shorts more ammo. I believe that ultimately the fundamentals of Afrezza sales will control the stock price and shorts will cover. At that time there will be little to no need to borrow our shares and we will see the stock appreciate in price. When that happens is yet to be determined.
Collecting 20% interest while we wait makes the ride more tolerable.
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Post by brentie on Mar 24, 2015 15:16:12 GMT -5
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Post by kc on Mar 24, 2015 15:33:28 GMT -5
What does all these shorts know that we don't know?
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Post by petech on Mar 24, 2015 15:37:50 GMT -5
They know how to cut a pretty sweet check to the people whose shares they are borrowing. Other than that, they don't have a crystal ball that works any better than the one we have.
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Post by babaoriley on Mar 25, 2015 0:59:35 GMT -5
Really surprised that the short interest went up, even if only a little. I was expecting at least a 3 million decline and a 5 million decline would not have surprised me at all.
Amazing!
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Post by joeypotsandpans on Mar 25, 2015 3:33:35 GMT -5
Really surprised that the short interest went up, even if only a little. I was expecting at least a 3 million decline and a 5 million decline would not have surprised me at all. Amazing! Maybe they went long ORMP yesterday lol....that's what is amazing...a stock s/p going up 71% for what we don't know yet but its history is a bit scary, racing up to $30/sh awhile back only to fall back recently to $3.71 see following article: observer.com/2014/02/tough-to-swallow-paper-trail-behind-breakthrough-leads-to-penny-stock-profiteers/ who knows maybe Novo is going to make a play (or some "news/SA release" from Lily no doubt coming) after seeing the reviews on social media regarding Afrezza...after all, NVO did make a new 52 week high yesterday...I will be looking seriously at some NVO SEP puts as what I have stated previously they're earnings are so dependent/concentrated around their insulins/diabetes....what really stands out with NVO for april are the option contracts (12k each) opened yesterday at the APR 60 strike both calls and puts. Feels like something is brewing, have to believe they feel threatened by SNY again via what they may be seeing regarding as what their own Scientific Director of Diabetes Biology indirectly stated could be the Holy Grail  |
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Post by kball on Mar 26, 2015 18:41:44 GMT -5
Just signed up for Fidelity's Fully Paid Lending.
Had no idea until reading this forum.
Thanks much to those folks participating and informing on this thread. Hard to count on a particular dollar amount as the share price and the interest rates seem to constantly be changing, but its nice to have some income from this investment for the time being.
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Post by gomnkd on Mar 26, 2015 19:07:08 GMT -5
Just signed up for Fidelity's Fully Paid Lending. Had no idea until reading this forum. Thanks much to those folks participating and informing on this thread. Hard to count on a particular dollar amount as the share price and the interest rates seem to constantly be changing, but its nice to have some income from this investment for the time being. I got mine yesterday. The whole transfer to fidelity from wells fargo took 3 days and loaning another day. I feel like an idiot for being lazy and not signing up sooner. Even now I got only 1/2 of my position loaned. I'm looking into EYES. This is giving 30% rate at fidelity. Al Mann looks like a shorts magnet. |
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