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Post by otherottawaguy on Feb 17, 2015 15:33:15 GMT -5
The odds of TD, RBC, Bank of NovaScotia going belly up are about zero. Just wished there was a way to lend shares it this theoretically capitalist country called Canada... Again anyone know of any way of doing this in Canada? Tried BMO last week and they said that there were no programs in place to "Lend" shares by specific holders of those share. They told me that if you had purchases on margin, they would be more than glad to lend them out for you, but alas would not be willing to share any of the revenues generated. Told me that they charged those that borrowed a level of interest comparable to what you are paying on your margin amounts.
Guy I was talking to sounded interested in passing up the info for discussion, but will probably not effect the status quo.
OOG
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Post by phantomfj on Feb 17, 2015 15:34:45 GMT -5
Loaning out shares just gives the shorts a rope to strangle themselves. Ultimately it will be the fundamentals of SNY/MNKD and the amount of RX's written by docs. MNKD has overcome multiple hurdles over the years. Each step of the way, shorts had the chance to cash in and many made $. Greed can work on both ends, shorts keep shorting at every new high and longs can average down at every sell off. Sooner or later someone will benefit and someone will be a loser. I am in the camp where I believe Afrezza will change the lives for the better of millions of diabetics and reap rewards for SNY, MNKD and long shareholders. The longs loaning out shares are being rewarded for the wait and act as a tight coil ready to spring when the RX #'s roll in over the next few months going forward. It seems I can't lend out my shares from my Canadian bank? Any other Canadians know anything about this? At these rates I could do very well with lending my shares out... I am Canadian and I use Interactive Brokers. I don't lend my shares out, but if you check this link they seem to pay interest...https://www.interactivebrokers.com/en/index.php?f=shortableStocks&p=stockyield No handholding with these guys, you had better know what you are doing because they don't have the best of customer service.....but their commissions for option trading are great, esp compared to Canadian brokers. I have my core holding in Mannkind, then I play options for a bit of extra cash per week. For example, sell a put option @ $7 strike, then if it is put to you, sell a covered call @ same strike price the next week. There are weekly options with mannkind now, so you can churn them over real quickly. It seems to work well right now with the shorts and MMs seeming to want to keep it at $7 close at the end of the week. |
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Post by tbone on Feb 17, 2015 16:53:56 GMT -5
Keep in mind that, while IB is offering something like 50% on shares, your lent shares are NOT collateralized there. To me, the juiced rate is not worth it. Would you loan hundreds of thousands of dollars to a stranger on the street backed by nothing? Stick with Schwab and Fidelity.
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Post by BlueCat on Feb 17, 2015 16:58:11 GMT -5
Nice for the shorts, perhaps.
(I mean, that Canadians don't charge shorts interest on borrowed shares. Sorry, missed quote button)
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Post by tbone on Feb 18, 2015 9:16:23 GMT -5
Today Fidelity at 17 1/4% from 14.
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Post by cybergym66 on Feb 18, 2015 10:14:49 GMT -5
Today Fidelity at 17 1/4% from 14. So what interest rate would force shorts to cover? Does the rate need to be in the 20's? 30s? So far it doesn't seem to make a difference...they treat it as the cost of doing business. |
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Post by jpg on Feb 18, 2015 12:01:34 GMT -5
Today Fidelity at 17 1/4% from 14. So what interest rate would force shorts to cover? Does the rate need to be in the 20's? 30s? So far it doesn't seem to make a difference...they treat it as the cost of doing business. Until they don't and someone goes broke.... |
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Post by mannmade on Feb 18, 2015 12:06:50 GMT -5
So what interest rate would force shorts to cover? Does the rate need to be in the 20's? 30s? So far it doesn't seem to make a difference...they treat it as the cost of doing business. Until they don't and someone goes broke.... To me it sounds like the shorts exit strategy is kind of like a game of musical chairs... |
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Post by cybergym66 on Feb 18, 2015 12:34:55 GMT -5
Until they don't and someone goes broke.... To me it sounds like the shorts exit strategy is kind of like a game of musical chairs... But they'll cheat and add more chairs! I think a large uptick in Call Options will indicate an effort to counterbalance their loses. |
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Post by joeypotsandpans on Feb 18, 2015 13:04:22 GMT -5
Until they don't and someone goes broke.... To me it sounds like the shorts exit strategy is kind of like a game of musical chairs... To me it looks like it's analogous to what turned the war on a stubborn Hitler who made the same error as Napoleon: en.wikipedia.org/wiki/Operation_Barbarossaen.wikipedia.org/wiki/French_invasion_of_RussiaI may even start referring to the short interest as Operation Barbarossa as they enter winter in Russia with food rations (shares in this case) diminishing and the cost to continue fighting (cost to borrow in this case) continues to rise and take its eventual toll (capitulation in this case). |
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Post by Deleted on Feb 18, 2015 13:09:29 GMT -5
What on earth are we missing?
Interest rates going through the roof, no shares to find/borrow, stock price despite the sell short pressure is maintaining and making lower lows.... What the heck is going on?
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Post by BD on Feb 18, 2015 13:32:54 GMT -5
Fug, for biotec stocks in general, seemingly random price fluctuations are de rigueur. The large short position just amplifies the volatility. There's no "why" to short-term price movements! In my mind, the answer is pretty much always, "Because some hedgie or trader, whale or otherwise, decided they would be bettering their position by hitting the bid, or the ask, or both, or doing whatever the heck has made them money in some similar situation in the past."
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Post by Deleted on Feb 18, 2015 13:34:42 GMT -5
Fug, for biotec stocks in general, seemingly random price fluctuations are de rigueur. The large short position just amplifies the volatility. There's no "why" to short-term price movements! In my mind, the answer is pretty much always, "Because some hedgie or trader, whale or otherwise, decided they would be bettering their position by hitting the bid, or the ask, or both, or doing whatever the heck has made them money in some similar situation in the past." Fair, enough, but something has to give. Question is when. |
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Post by jpg on Feb 18, 2015 13:37:06 GMT -5
What on earth are we missing? Interest rates going through the roof, no shares to find/borrow, stock price despite the sell short pressure is maintaining and making lower lows.... What the heck is going on? Desperation? I do think some big players are possibly trapped in a position they can't cover and are hoping that poor initial sales give them an opportunity to cover without courting disaster. 30% interest rates for 1 month are easily manageable. Operation Barbarossa? The Battle of Dieppe? Wait wrong side... La campagne de Russie? Hmmm. Sanofi might not like that... Now we just need to wait to figure out what side we are on. |
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Post by gomnkd on Feb 18, 2015 14:25:22 GMT -5
What on earth are we missing? Interest rates going through the roof, no shares to find/borrow, stock price despite the sell short pressure is maintaining and making lower lows.... What the heck is going on? On an average, the companies with high short interest rates (and ratio) tend to fall a lot and shorts make a profit. The high rate alone is not a case for short squeeze. Only in a very few cases (you can count with both hands) you'll see a short covering & rising stock prices. The shorts get it right most of the time. I can wear a shorts hat and make a strong case for shorting: (this is a sampling, BTW, I've never shorted MNKD) 1) History has repeatedly shown that longs have lost money and shorts have won 2) History has shown that inhaled insulin has no market & has been a failure 3) Market leaders pulled out of inhaled insulin as they never saw a demand. Why would they willingly concede market share? 4) The only thing in the world that multiplies faster than horny rabbits is outstanding shares of MNKD. 5) Even if Afrezza succeeds, it'll have a niche market with peak sales of <100MM. The market cap is pricing in ~500MM sales or more 6) Afrezza has dosing/titration, cancer issues, it is expensive (many insurance cos have placed in Tier 3), injections are no big deal, is inferior to injections for controlling A1C.... 7) The smartest insider Palumbo always sells her MNKD stock ......... |
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