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Post by cybergym66 on Feb 11, 2015 14:45:40 GMT -5
[Thread originally titled, "Big demand to short shares. Interest up again."
-BD]Today's yoyo chart must have had a lot to do with more short attacks. I can only base that on the increase in interest that Fidelity just posted. They just raised the interest on my borrowed shares from 12% to 14%. Truly amazing. Ash, spoke w/my contact who is a MM and he stated that the borrow rate at BoNY Mellon Pershing was an astonishing 30-40%...now that is an amazing load for one to carry...I don't care how deep your pockets are...all I know from years of experience is when you see rates like that it is usually perilously close to the one borrowing or carrying that interest to punt and file BK...just sayin... That would be sweet! I need to sell some Puts ASAP!!! |
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Post by jpg on Feb 11, 2015 14:50:38 GMT -5
[Thread originally titled, "Big demand to short shares. Interest up again."
-BD]Today's yoyo chart must have had a lot to do with more short attacks. I can only base that on the increase in interest that Fidelity just posted. They just raised the interest on my borrowed shares from 12% to 14%. Truly amazing. Ash, spoke w/my contact who is a MM and he stated that the borrow rate at BoNY Mellon Pershing was an astonishing 30-40%...now that is an amazing load for one to carry...I don't care how deep your pockets are...all I know from years of experience is when you see rates like that it is usually perilously close to the one borrowing or carrying that interest to punt and file BK...just sayin... I think Keynes said the market can stay irrational longer then you can stay solvent. Wonder if this might apply to some of our shorts forced to pay these crazy sums? And on top of it all hopefully for us their premise is wrong and medium term market efficiency will just raise the price some more... |
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Post by Deleted on Feb 11, 2015 15:42:43 GMT -5
After trolling this site for close to a year I joined today for the sole purpose of adding to this thread. I have always disliked shorting a stock and have never done it. To me it is tantamount to wishing bad luck on someone. But I am surprised at the number of people in here who have indicated that they allow their shares to be loaned to those who short stocks. To me that is like selling ammunition to your enemy. The little money you gain is more than offset by the harm you are doing to your side. Those who chose to allow their shares to be shorted are harming the majority of us longs for small personal gain. When the stock drops significantly as it is doing today the loss your shares have suffered are more than offset by the small percentage you gained from the loan. If everyone in here who has allowed his shares to be loaned out would terminate the arrangement it might produce a really significant short squeeze.
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Post by shortslaver on Feb 11, 2015 15:48:03 GMT -5
After trolling this site for close to a year I joined today for the sole purpose of adding to this thread. I have always disliked shorting a stock and have never done it. To me it is tantamount to wishing bad luck on someone. But I am surprised at the number of people in here who have indicated that they allow their shares to be loaned to those who short stocks. To me that is like selling ammunition to your enemy. The little money you gain is more than offset by the harm you are doing to your side. Those who chose to allow their shares to be shorted are harming the majority of us longs for small personal gain. When the stock drops significantly as it is doing today the loss your shares have suffered are more than offset by the small percentage you gained from the loan. If everyone in here who has allowed his shares to be loaned out would terminate the arrangement it might produce a really significant short squeeze. First: If you aren't selling and believe that ultimately the price will be much higher, you aren't suffering at all. You're making money on the side during the time it takes to get to where you want. Second: If you own stock in MNKD through any broker then they make it available to loan to people who short it. You might not know it but your shares are very likely being loaned out as we speak. At least some people get paid for it. |
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Post by joeypotsandpans on Feb 11, 2015 15:57:37 GMT -5
After trolling this site for close to a year I joined today for the sole purpose of adding to this thread. I have always disliked shorting a stock and have never done it. To me it is tantamount to wishing bad luck on someone. But I am surprised at the number of people in here who have indicated that they allow their shares to be loaned to those who short stocks. To me that is like selling ammunition to your enemy. The little money you gain is more than offset by the harm you are doing to your side. Those who chose to allow their shares to be shorted are harming the majority of us longs for small personal gain. When the stock drops significantly as it is doing today the loss your shares have suffered are more than offset by the small percentage you gained from the loan. If everyone in here who has allowed his shares to be loaned out would terminate the arrangement it might produce a really significant short squeeze. Obviously for it to have you come out from behind the curtain and garner your first post it is perplexing and a sore spot for you and understandably so from a surface standpoint. However, from someone that has been and is very long who knows quite a few who are getting "rewarded" for allowing their shares to get loaned out at very favorable rates, they don't see it the same way, in fact just the opposite. They are very long term holders and they don't care about the day to day fluctuations but rather are focused on the end game. So their take is while they wait for that end game whatever and whenever their individual goals and timing are they figure why not get paid for waiting and let the other side continue to chase and possibly bury themselves further...it is their money and their investment decision and quite frankly it amounts to increasing their ROI rather than harm it in the longer run...getting 14% return on your money today is very enviable by those who are not, I could never blame them for taking advantage of what makes very prudent business sense. JMO fwiw. |
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Post by Deleted on Feb 11, 2015 16:06:10 GMT -5
First of all I checked with my broker, Fidelity, and unless they lied to me they are not allowed to loan out my shares without my permission. Others have checked with their brokers and received the same answer. Brokerages can loan out shares that are purchased on margin as per the margin agreement but under no other circumstances.
Those who are getting rewarded for loaning out their shares are taking their reward from those of us who are not loaning out our shares by keeping the share price down. Do you really think that if shorts were paying even more interest on what few shares were available or having to cover because none were available that the price would not go up? Those who are loaning out shares are reaping a small reward at the price of a much larger reward for all of us.
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Post by joeypotsandpans on Feb 11, 2015 16:26:00 GMT -5
I will use this very simple and basic example (it's not as simple as this but for practical purposes will use it) for you one time and leave it at that as maybe some others will be willing to go back and forth with you... 50k shares @ avg. price $6.00 = $300k X avg. 10% = $30k/yr. = $2500/mo....now did you think there might be the possibility they are reinvesting the proceeds to increase their position and reduce the amt. of shares available come time when demand may come for those shares. In the end they are not creating any more shares, quite the opposite, they are creating more rope for the possible hanging so to speak which is not "costing" you anything if you're there to witness the possible hanging...if you can't wait for that due to personal circumstances then perhaps you should be invested elsewhere or not in the markets at all as this is the hand that the markets deal you and like it or not there is not much being done about it currently. Not trying to be smug, just stating the reality of the situation. Hope you will end up seeing the light at the end of the looonnngg tunnel  |
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Post by _neil on Feb 11, 2015 16:28:16 GMT -5
Wow.. just wow
I am disappointed with today's price movement to say the very least but I have to applaud the balls on the people on the short side. They practically are a bunch of geniuses. I mean no cynicism on that statement. Longer term, I hope my fellow longs will be rewarded for the patience but in the meanwhile, I can't help but jealously look at the profits the shorts are raking in.
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Post by ezrasfund on Feb 11, 2015 16:49:27 GMT -5
Up 8% one day and down 8% the next day. Days like today used to upset me, but not any longer.
The only people making or losing money on these wild price movements are the day traders. And if any shorts made money today, they are just recouping what they lost last week. On the other hand every day there is interest due on those borrowed shares, and that money only flows one way.
Sanofi is out selling Afrezza, and my sense is that it is such a paradigm shift in diabetes treatment that it is even difficult for doctors to comprehend. So now that we have gotten past the FDA, the real wild card, it is just a matter of time.
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Post by dreamboatcruise on Feb 11, 2015 17:57:53 GMT -5
I for one don't hold it against anyone loaning out their shares. I'd probably be doing it myself if not for having them in Ameritrade, which apparently doesn't pay interest.
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Post by kc on Feb 11, 2015 18:05:55 GMT -5
Something strange is going on in the Afterhours trading. I see a new term on the Fidelity site and it shows trading as an NL Trade. So I researched the NL Trade and found the following information. Now you all know that I have watched diligently the Time and Size sales data for the last 9 month on Fidelity. This is the very first time I have ever seen the "NLTrade" on the board. Perhaps nothing but it seems very strange the block trading the last several weeks. Like that trade shown in this picture below. Was that 59,399 a block purchased during trading hours and settled based on averages AH? Was it traded from one institutional buyer to another at a set price since there were two identical trades? I guess we are in the darkpool space. Attachment DeletedAttachment Deleted |
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Post by kc on Feb 11, 2015 18:34:07 GMT -5
Big block trades today. 9000-11,999 Shares  12,000 shares and above.  |
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Post by waldemar on Feb 12, 2015 2:34:32 GMT -5
There was also a strange AH trade at 17:06 of 12550 shares for 7.58 / share. The pps of the previous trade at 17:03 was 6.98, the next at 17:07 - 6.99. I cannot explain this huge difference.
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Post by _neil on Feb 12, 2015 12:51:20 GMT -5
Aaaaaand we are back on earth again. I am perfectly happy to see the management say 'embarrassment of riches' when it comes to Technosphere applications and not get into any details. This will mean the longs can properly value the company for what it is and maybe backup the truck while the shorts give us a nice discount. The company can focus on the cartridge sizing, production scaling etc. without distractions and we will see the value shine in a couple quarters.
I know people have been on this ride way longer than I have but given my poor prior investing decisions and given that I have decades to go for retirement, I am buckled in for a decent cruise up rather than a liftoff.
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Post by shortslaver on Feb 12, 2015 13:00:24 GMT -5
A ton of PUTS bought today that expire tomorrow. I assume someone is making a huge bet on prescription numbers (released tomorrow at 7AM) being very poor.
Honestly, I'm not even sure what is being expected. I expect unless it's a huge number (over 500) the short thesis will immediately say "nobody wants this - Exubera 2..." and there possibility of the stock going much lower. If it comes in very low (like 20 for instance) the stock could really struggle I suspect.
I don't expect very high numbers as most any prescription drug takes some time to get going. But, it would be a pleasant surprise to see relatively great numbers. If they have 1,500 sales reps and they all saw 5 doctors and 20% of them wrote a prescription we could see over 1000 which would be very positive.
We all know that the real test will be to see where we are in 3-5 months, but the market is emotional and this is a very critical moment for the short term at least. I'm sort of happy the stock has taken a beating this week.
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