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Post by ashiwi on Jun 5, 2015 12:47:40 GMT -5
Fidelity Just raised the interest for borrowers (shorts) to 41.75%. It's going to be a very painful and costly weekend for them. I can't see how this interest rate doesn't squeeze a few shorts into covering. If we only had a big catalyst so the shorts would cover like lemmings.
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Post by patryn on Jun 5, 2015 12:50:26 GMT -5
I have to admit that I am in that camp. I bought shares specifically to lend them out to clamp down on my impulse to profit take or sell when I think the price has become irrational. If I am making some interest rate on the shares, then I will be less inclined to make changes in my holdings. I hold shares in Fidelity that I won't be touching for many years, but I also opened a few smaller positions in my Sharebuilder and Etrade accounts that will likely get sold at some point because I don't have that interest rate payment to keep my twitchy fingers from clicking
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Post by kc on Jun 5, 2015 14:03:53 GMT -5
Please Squeeze me Annual Interest Rate: 41.750% Fidelity
It keeps going up with the PPS....
The rate is now 41.750% Please squeeze me.... Thumbs up if you like the new rate.
for lenders its 29.25%
Can I relax this weekend?
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Post by gestan on Jun 5, 2015 14:07:50 GMT -5
Rest assured you get the highest rate yet this weekend for non trading days Saturday and Sunday
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Post by petech on Jun 5, 2015 14:14:44 GMT -5
This feels like the countdown to new year's eve waiting for the closing bell! This is going to be a fantastic "free money" weekend. Can't wait to calculate it all out....and likely buy some very nice things
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Post by kc on Jun 5, 2015 14:31:16 GMT -5
Go out and look at SHAK there rate is at 94.50% with no shares available
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Post by petech on Jun 5, 2015 14:33:58 GMT -5
Nah....I think SHAK is crap. I have zero interest in burgers; can get them anywhere. I think the future for MNKD is fantastic. I'm all happy to lend those type of shares out at.
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Post by kc on Jun 5, 2015 14:37:33 GMT -5
I agree with you. overpriced but pumped by Cramer and the Street. My point is how crazy the shorts are on this offering to have it at 94.50% We have some room to rise.
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Post by bradleysbest on Jun 5, 2015 14:49:27 GMT -5
What is Schwab's current rate?
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Post by petech on Jun 5, 2015 15:08:52 GMT -5
Schwab is already at 90% (of course, they only pay out 20%)...but the borrow rate is super high. Plus Cramer's fat puppet tweeted that the borrow rate is like 75 or 85 percent or something....so we're already at insane rates. Just matters where you are borrowing from.
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Post by gestan on Jun 5, 2015 15:39:11 GMT -5
Darn! I got some position returned back from loan!
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Deleted
Deleted Member
Posts: 0
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Post by Deleted on Jun 5, 2015 16:28:07 GMT -5
Darn! I got some position returned back from loan! Weak shorts I guess just like weak longs
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Post by MnkdMainer (MM) on Jun 5, 2015 23:58:55 GMT -5
An increase in demand for shares to short would be consistent with a rise in the share price if they are trying to forestall a run. Of course, if that is the motive, and if the effort fails, they've only dug their hole that much deeper. Wouldn't an increase in demand for shares to borrow push the price down? The entity borrows the shares and then sells them on the open market. This increases the supply of shares available to sell. My novice sense is that the increase in the share lending rate is due more to a shortage of supply than increasing demand. Even if demand is lessening, the share lending rate will increase if the supply is dwindling more quickly. Bob, does your language above imply (assume?) that for every increase in demand, there is a corresponding increase in shares sold? Again, my novice thinking is telling me that there are just not as many available shares to borrow as there were previously.
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Post by bighouseofi on Jun 6, 2015 15:49:20 GMT -5
Not sure where to post this but let me preface that I have been up....down....up.....down.....up in my mnkd investment life. Go backward with each up and down and you can figure out where I came in. Anyway, I am in mulling mode, and am thinking about earnings in August. Let's say you have ridden this roller coaster a few times, and lets imagine the price appreciates significantly up to next earnings. Now, let's say the earnings call hits expectations. You see a red day or two. Do you hold your breath and hope for the best, or do you sell with the thought this is going down hard again, and get back in at a predetermined albeit much lower price? I feel a sense of deja vu. This is what I am mulling. I guess it's a better mull than where the hell am i gonna come up with 11k for that margin call?
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Post by ezrasfund on Jun 8, 2015 7:54:26 GMT -5
Thank you for participating in Schwab's Securities Loan Fully Paid (SLFP) program. We're writing to let you know that the income rate has changed for the following securities loaned to Schwab through the SLFP program:
Drum roll please...
Security Name Security ID Old Rate New Rate MANNKIND CORP MNKD 20% 30%
Income rate changes for a loaned security are most frequently due to fluctuations in the supply and demand for that security.
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