Poll on shares being lent out

[BD]

I thought it might be interesting to find out how many shares could be pulled from the shorts' clutches if we were to all cease lending our shares (actually, I don't lend mine, but I mean that collectively.)

Note that the board software does not keep track of who voted what, so even the staff won't see how many shares you own.

[mnholdem]

I think this poll would make more sense if only those who are ABLE to lend shares were asked to participate, otherwise I could vote I DO NOT LEND OUT MY SHARES! simply because I'm not allowed to.

BTW, isn't this All-Caps last choice considered "shouting", which is a violation of board rules? (chuckle)

Yep, right now I (and possibly 30+ other board members) must be shouting:

I DO NOT LEND OUT MY SHARES!
I DO NOT LEND OUT MY SHARES!
I DO NOT LEND OUT MY SHARES!

[opera1]

I don not loan out any of my almost 30,000 shares

[BD]

mn, there are lots of variables, but what I'm hoping for is just a very rough baseline value (guess) for the number of shares being lent out by the average retail shareholder. Anyone who does not lend their shares out, for any reason (including not being able to even if they wanted to) can check the last option and provide useful data.

[mnholdem]

So far, it looks like about 40% of respondents are lending shares.

[longstocking]

My shares are not lent out and are not for sale. I plan to hold for years, not days.

[patryn]

Aug 11, 2015 11:16:56 GMT -5 mnholdem said:

So far, it looks like about 40% of respondents are lending shares.

50/70 are not lending shares so wouldn't that make 20/70 who are?

2/7 = 28.5714%?

Unless you mean of the ones who have the ability or desire to lend shares?

[anderson]

Think there should have been another column. "Don't meet brokers requirements to lend shares, but would if I could."

[mannmade]

Also those who are in margin accts.

[BD]

If you have your shares in a margin account and are carrying a margin balance, I believe that is generally sufficient to imply they are eligible for being lent out, unless your brokerage explicitly tells you otherwise.

Note that you can change your vote in a poll, until it is locked...

[patryn]

I've mentioned before that one of the reasons I bought more shares in MNKD in the first place was because of the share lending program. It is my belief that short term price fluctuations do not impact my investment thesis as long as MNKD is solvent long term and has some growth prospects. I never bought into MNKD expecting a 5x or 10x return on investment in a short time frame, and I believe that anyone who thinks that is just flat out gambling. I wanted the semi steady returns on a good interest rate for lending out my shares, and stock appreciation is really just a bonus in that it gets me a higher interest amount on my shares, since I almost never sell unless the business model for the business fundamentally changes.  This is offset by the fact that with the higher price, it means I can buy fewer shares with the interest payment so it stays pretty balanced for me.  I am adding approximately 10k shares of MNKD per month to my holdings as the interest amount/ share price is actually fairly constant.

The only way that investors make money is to think in terms of fractional ownership of a business, not shares and share appreciation. As a fractional owner of MNKD, I expect to one day receive a dividend payment from the profits that MNKD generates with its line of Technosophere powered drugs. In the meantime, I am content making a small return in interest income that I will immediately use to repurchase more shares. I will not be selling for the next 20 years short of the business model changing. This is why I am not worried about the short term price fluctuations nor am I concerned by the "I want my profit now" short term investors.

[kc]

Don't lynch me as I agree with Patryn.

You can have them in a Margin account and designate them as Cash and they will not be lent out. My shares at Fidelity are in a account that is a Margin account but are designated at Cash and have been in the lending program. I heard what Matt said yesterday. I appreciate his comments but the small amount that retail longs have in the lending program is very small compared to the Hedges and MM who are manipulating the shares.  Many of us are upside down on their invested capital in MannKind and the interest receive is really covering my cost of funds on my invested capital.   At some point when if the PPS goes up to that point I will take out of the program.

My guess is that the  9 million B of A shares have been lent out and equal 4X the shares.  

[joeypotsandpans]

Regarding Matt's statement, I interpreted it mainly as a timing issue regarding the convertible conversion instrument/procedure and not as a permanent suggestion. I believe he felt that if there were not a fair amount of the float being lent out that the s/p would have a harder time getting put beneath the floor if you will. I certainly don't think they have a problem with those that are using the interest payments (monthly dividends as they are perceived) in a reinvestment sense to buy more shares. You cannot fault those that are long term holders getting an ROI on their personal money and rather should appreciate the fact they are long term holders. So, thank you to those that have "locked up those shares", yes they are being "lent" out but they will be returned at some point whether it is forced by them covering due to pressure from an increasing s/p or the long term holder has other/better use for their funds. After all, the fundamentals will trump everything else in the end...we're closer every month but just not quite there yet...ZZZZzzzz



On a side note, if you have 10 in the poll that hold 80% of the shares that are being lent out, you can't look at the total numbers and make any assumptions w/o knowing the share counts of each catergory in the poll IMO. In other words, as an example, the "don't lend" respondents may only be 10% of shares held out of the total amount of respondents.

[cusop]

MNKD pro boards become the non stealth market manipulator .. Oh how the shorts will scream unfair, unfair!!

[fedakd]

Aug 11, 2015 12:17:34 GMT -5 patryn said:

I've mentioned before that one of the reasons I bought more shares in MNKD in the first place was because of the share lending program. It is my belief that short term price fluctuations do not impact my investment thesis as long as MNKD is solvent long term and has some growth prospects. I never bought into MNKD expecting a 5x or 10x return on investment in a short time frame, and I believe that anyone who thinks that is just flat out gambling. I wanted the semi steady returns on a good interest rate for lending out my shares, and stock appreciation is really just a bonus in that it gets me a higher interest amount on my shares, since I almost never sell unless the business model for the business fundamentally changes.  This is offset by the fact that with the higher price, it means I can buy fewer shares with the interest payment so it stays pretty balanced for me.  I am adding approximately 10k shares of MNKD per month to my holdings as the interest amount/ share price is actually fairly constant.

The only way that investors make money is to think in terms of fractional ownership of a business, not shares and share appreciation. As a fractional owner of MNKD, I expect to one day receive a dividend payment from the profits that MNKD generates with its line of Technosophere powered drugs. In the meantime, I am content making a small return in interest income that I will immediately use to repurchase more shares. I will not be selling for the next 20 years short of the business model changing. This is why I am not worried about the short term price fluctuations nor am I concerned by the "I want my profit now" short term investors.

Hope you don't expect a dividend from Mannkind anytime soon. Maybe in 20 years