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Post by caveintemptor on Oct 13, 2015 17:39:21 GMT -5
Since the convertible got extinguished on Aug 15, the clock has been ticking for Bank of America to return its 9,000,000 shares borrowed from Mannkind.
By my count this should happen by Oct 23...
As 9,000,000 shares are about to disappear from possible loans, it should be interesting to see how this impact shorts positions, all the more with 104,000,000 calls written...
Add this to continued script growth, DTC, and improved formulary placement, and some very interesting times are coming.
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Post by centralcoastinvestor on Oct 13, 2015 17:52:03 GMT -5
Since the convertible got extinguished on Aug 15, the clock has been ticking for Bank of America to return its 9,000,000 shares borrowed from Mannkind. By my count this should happen by Oct 23... As 9,000,000 shares are about to disappear from possible loans, it should be interesting to see how this impact shorts positions, all the more with 104,000,000 calls written... Add this to continued script growth, DTC, and improved formulary placement, and some very interesting times are coming. It would be nice if there was a way to confirm the share return date. I wonder if the approaching return date is causing all of the financial firms to increase the interest rates for loaning the short shares. I think the B of A share return is going to make life uncomfortable for the shorts. At least, I hope so. |
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Post by kc on Oct 13, 2015 17:56:50 GMT -5
I liked Matt's comment that the company would filling in the details at the 3rd quarter call in November. That has to concern shorts / longs equally. I guess we don't know anything YET !
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Post by newmnkdinvestor on Oct 13, 2015 18:14:56 GMT -5
Why does everyone think that the shares have not been covered yet? Do you think they would wait until the last minute? I actually think the cover occurred June/July.
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Post by roseylv on Oct 13, 2015 18:37:17 GMT -5
Why does everyone think that the shares have not been covered yet? Do you think they would wait until the last minute? I actually think the cover occurred June/July. I agree! I recall a lot of very large block buys going into the close for quit a number of trading days. It was very consistent. Consistent enough to be a bank. |
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Post by newmnkdinvestor on Oct 13, 2015 18:38:36 GMT -5
Why does everyone think that the shares have not been covered yet? Do you think they would wait until the last minute? I actually think the cover occurred June/July. I agree! I recall a lot of very large block buys going into the close for quit a number of trading days. It was very consistent. Consistent enough to be a bank. Its crazy. its not even a thought for some. Its just assumed it hasn't happened yet. |
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Post by caveintemptor on Oct 13, 2015 18:55:16 GMT -5
Bank of America's 13F only listed 226,000 shares in its name as of Jun 30.
There were also some 2.1 M shares listed with Merrill Lynch, but as it is a wealth manager, I would believe those are its clients' not BoA's...
Anyway, as of June 30, this was far from 9,000,000.
My first point was BoA's need to make the number.
My second is that 9,000,000 shares on loan are just about to disappear...
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Post by dreamboatcruise on Oct 13, 2015 18:58:30 GMT -5
Since the convertible got extinguished on Aug 15, the clock has been ticking for Bank of America to return its 9,000,000 shares borrowed from Mannkind. By my count this should happen by Oct 23... As 9,000,000 shares are about to disappear from possible loans, it should be interesting to see how this impact shorts positions, all the more with 104,000,000 calls written... Add this to continued script growth, DTC, and improved formulary placement, and some very interesting times are coming. We can only hope that the formulary numbers start changing. They haven't budged for many months now, at least not as viewed on formularylookup.com |
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Post by mbseeking on Oct 13, 2015 20:29:31 GMT -5
Since the convertible got extinguished on Aug 15, the clock has been ticking for Bank of America to return its 9,000,000 shares borrowed from Mannkind. By my count this should happen by Oct 23... As 9,000,000 shares are about to disappear from possible loans, it should be interesting to see how this impact shorts positions, all the more with 104,000,000 calls written... Add this to continued script growth, DTC, and improved formulary placement, and some very interesting times are coming. We can only hope that the formulary numbers start changing. They haven't budged for many months now, at least not as viewed on formularylookup.com Like you I've been checking formularylookup and thought there been no change. I've been checking the percentages only. But mnholdem may have picked the inflection point mnkd.proboards.com/post/41004. Some could call it noise but it does seem that when you focus on the actual plans (instead of overall percentages) there has been a slight shift in the last couple of days to better coverage.. hopefully the bow wave of something bigger to come. |
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Post by james on Oct 13, 2015 21:15:30 GMT -5
We can only hope that the formulary numbers start changing. They haven't budged for many months now, at least not as viewed on formularylookup.com Like you I've been checking formularylookup and thought there been no change. I've been checking the percentages only. But mnholdem may have picked the inflection point mnkd.proboards.com/post/41004. Some could call it noise but it does seem that when you focus on the actual plans (instead of overall percentages) there has been a slight shift in the last couple of days to better coverage.. hopefully the bow wave of something bigger to come. I have seen this as well. 2 plans moved to the 'preferred' category and 12 to 'covered' from 'restricted', just in the last 24 hours. The percentage number is number of lives, which isn't showing a change yet. These represent tenths of a percent, but there is change percolating. On the 9M shares being returned, it is a point of assumptions which can be wrong. However, I have a hard time believing that those shares would have already come back given that the number of shares shorted has grown since summer (by the last reported short count). If it has been happening over the past week, what evidence is there? The rate to borrow is going up (constraining supply), but share price is dropping which indicates net selling rather than buying. 9M is a lot of buying to bury! It's possible that some institutional holding that was previously built up is being used as a source to cover the short. But that also seems counter productive for the 9M shares short as the whole transaction would net to zero. They should be trying to capture the downward price, not tread water... Who's got 9M shares to sell? Who - the ATM? Where is the volume for that? I think the most likely explanation is that someone is working like crazy to line up more short supply in a very quiet attempt not to cover and this is why the borrowing rate is going up; and is likely to go up further. We shall see... |
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Post by rrtzmd on Oct 13, 2015 21:47:18 GMT -5
My own impression from reviewing the original prospectus is that the 9 million shares were part of a hedge established for some institution buying the convertible bond. The way it reads, it sounds like, once the bond came due, the convertible holder simply converted the bond, handed those shares over to BoA, who, in turn, returned them to MNKD. Has MNKD confirmed or denied that the shares have already been returned?
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Post by mnholdem on Oct 13, 2015 21:54:09 GMT -5
I do have a preliminary formulary table in the test folder... hopefully I'll get this posted by the end of the week. But the numbers are there if you want to take a look. You'll see the movement appears to have started.
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Post by anderson on Oct 14, 2015 1:05:50 GMT -5
Anyone know where we can find out how many options are due this week?
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Post by anderson on Oct 14, 2015 1:09:17 GMT -5
Also BoA will not return the shares early if they are making money off of them, why leave money on the table.(IE the ones they have purchased they are lending out.)
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Post by newmnkdinvestor on Oct 14, 2015 15:14:12 GMT -5
I still think they covered when we hit the threes a few months ago. That covering along with the Jefferies target price was the reason for the mini squeeze.
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