Institutions Lend Out Shares to Make Profits but...

[joeypotsandpans]

Like I mentioned before any suppression of price due to borrowed shares is a temporary phenomenon until the lender comes calling


seekingalpha.com/article/2964626-institutions-lend-out-mannkind-shares-to-make-profits-but-depress-the-price-as-well

[mnholdem]

And we don't know when the lender will call. The author suggests institution expect a long wait for profits, while I suspect an increase in script numbers is imminent. This should translate into immediate profits from the institutions' point of view, but until there's sufficient buying pressure to cause pps to rally, won't these institutions remain content to simply collect interest on borrowed shares?

[cybergym66]

Mar 2, 2015 12:23:50 GMT -5 mnholdem said:

And we don't know when the lender will call. The author suggests institution expect a long wait for profits, while I suspect an increase in script numbers is imminent. This should translate into immediate profits from the institutions' point of view, but until there's sufficient buying pressure to cause pps to rally, won't these institutions remain content to simply collect interest on borrowed shares?

It looks like the institutions are in a win-win situation...The price stays were it's at and they collect the 20% interest on shares loaned to short...The price goes up and they make money when the shorts have to chase the SP to buy back shares.