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Post by LosingMyBullishness on Apr 12, 2018 5:40:03 GMT -5
Whatever MNKD management says: The day the private investors get their warrants or shares, they lend them out or use them captively. It's a good, safe business which is paid by the retailers.
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Post by boca1girl on Apr 12, 2018 10:15:51 GMT -5
All of my shares we were returned Monday morning, 4/9. As of this afternoon, 29% of them have been lent out again but interest paid by Fidelity is down to 26.125% 80% of my shares have been loaned out again but interest paid has now dropped to 24.625%. Loan rate dropped again, now 24%. I talked to Fidelity about demand and they said a very large number of shares were returned on Monday, so demand has dropped. They still haven’t loaned back out all of my shares. I convinced my husband to buy MNKD 2 years ago and then recently recommend he loan out his shares after blaming me for the loosing position. He has about 1/4 the number of shares I have. None of his shares were returned but 100% of mine were returned. When I asked Fidelity about that, they said when they get a large number returned and believe they can get them loaned out again in a week, they will return shares to accounts that have the largest positions to reduce their book keeping (ie. affecting 10 accounts vs 100). They told me that the placement/allocation of shares is a manual process for them.
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Post by dreamboatcruise on Apr 13, 2018 16:35:47 GMT -5
Schwab today returned shares in 2 of the 3 accounts I hold MNKD. They are not overly quick to return shares, so I suspect they are not expecting an uptick in demand for shares in the near future.
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Post by boca1girl on Apr 13, 2018 20:40:55 GMT -5
This week the demand for loaned shares really dropped off. My shares are still around 80% loaned out and that has never happened since I joined the program. Interest paid dropped again today, down to 23.125% at Fidelity. It sure feels like we’ve hit a near term bottom.
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Post by boca1girl on Apr 16, 2018 13:09:20 GMT -5
This week the demand for loaned shares really dropped off. My shares are still around 80% loaned out and that has never happened since I joined the program. Interest paid dropped again today, down to 23.125% at Fidelity. It sure feels like we’ve hit a near term bottom. Interest paid down to 20.25% today at Fidelity. 20% of my shares still not loaned out.
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Post by dreamboatcruise on Apr 16, 2018 13:38:58 GMT -5
This week the demand for loaned shares really dropped off. My shares are still around 80% loaned out and that has never happened since I joined the program. Interest paid dropped again today, down to 23.125% at Fidelity. It sure feels like we’ve hit a near term bottom. Interest paid down to 20.25% today at Fidelity. 20% of my shares still not loaned out. Likely some of the 14M new shares making it into the lending pool, combined with no near term catalyst for the shorts for at least a few months until another capital raise becomes necessary. Will be interesting if any meaningful covering has occurred.
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Post by boca1girl on Apr 16, 2018 18:24:07 GMT -5
This week the demand for loaned shares really dropped off. My shares are still around 80% loaned out and that has never happened since I joined the program. Interest paid dropped again today, down to 23.125% at Fidelity. It sure feels like we’ve hit a near term bottom. Interest paid down to 20.25% today at Fidelity. 20% of my shares still not loaned out. More of my shares were returned today, now down to only 65% loaned out. I guess I won’t be buying many more shares with with the interest earned. Hopefully the shorts are starting to throw in the towel. I would much rather have the stock appreciate than earn interest on loaned shares. Maybe the short positions on the new 14M shares are been closed out now.
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Post by sportsrancho on Apr 16, 2018 18:34:59 GMT -5
Interest paid down to 20.25% today at Fidelity. 20% of my shares still not loaned out. More of my shares were returned today, now down to only 65% loaned out. I guess I won’t be buying many more shares with with the interest earned. Hopefully the shorts are starting to throw in the towel. I would much rather have the stock appreciate than earn interest on loaned shares. Maybe the short positions on the new 14M shares are been closed out now. Yes! Was waiting and hoping to hear you say that:-)) Meaning that the shorts are leaving.
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Post by casualinvestor on Apr 17, 2018 10:01:24 GMT -5
Interest paid by Schwab is up to 18% from 15%
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Post by dreamboatcruise on Apr 17, 2018 10:37:17 GMT -5
Looks like mixed messages. No way to really know until biweekly short interest comes out.
Hopefully if there were any significant short covering we'd be getting meaningful price appreciation. I'm guessing it's more increase in supply for loan rather than covering... but that's certainly a guess.
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Post by boca1girl on Apr 17, 2018 12:02:49 GMT -5
Looks like mixed messages. No way to really know until biweekly short interest comes out. Hopefully if there were any significant short covering we'd be getting meaningful price appreciation. I'm guessing it's more increase in supply for loan rather than covering... but that's certainly a guess. Trading volume has been pretty low and price isn’t moving so maybe it’s just slow and steady covering. Rate paid dropped again to 19.5%. Dreamboat, I’m a bit confused by your supply comment. I thought I learned from members here that the buyers of the new 14M shares/warrants shorted before they took possession of the shares and would use the shares to close out the short position after the stock dropped. Isn’t that what we just witnessed the last couple of weeks? So now, if those short positions have been closed and they have taken their profits shorting the 14M shares, they are now making those 14M shares available to be loaned, therefore more supply than demand and the falling interest rate? Do I understand this correctly?
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Post by dreamboatcruise on Apr 17, 2018 12:26:21 GMT -5
Looks like mixed messages. No way to really know until biweekly short interest comes out. Hopefully if there were any significant short covering we'd be getting meaningful price appreciation. I'm guessing it's more increase in supply for loan rather than covering... but that's certainly a guess. Trading volume has been pretty low and price isn’t moving so maybe it’s just slow and steady covering. Dreamboat, I’m a bit confused by your supply comment. I thought I learned from members here that the buyers of the new 14M shares/warrants shorted before they took possession of the shares and would use the shares to close out the short position after the stock dropped. Isn’t that what we just witnessed the last couple of weeks? So now, if those short positions have been closed and they have taken their profits shorting the 14M shares, they are now making those 14M shares available to be loaned, therefore more supply than demand and the falling interest rate? Do I understand this correctly? Shares do not have to be delivered immediately when a short occurs. My understanding is that someone with information about a PIPE cannot short until they are obligated to the PIPE (i.e. signed documents). Shares are normally delivered quickly after the PIPE is signed, usually quick enough that they could be used to deliver on the short before shares actually would need to be borrowed. I don't even think this would be considered a "naked short" since the shorter would know where they will obtain shares for delivery. At least this is my understanding. Bottom line, that sort of shorting doesn't necessarily need to effect borrow rates. Perhaps there is a potential that some organization might have shorted early based on a general understanding that all of us should have had that dilution would be necessary before that organization would be prevented from shorting by virtue of having insider info about the offering but not yet obligated it. But that exposes them to trading risk that apparently is not usually the operating MO of these organization. I do not know first hand, but others have said these entities would rather do the short term nearly risk free maneuver of waiting until they have a guaranteed discount on the shares (but not yet public information) and then short briefly to cover the time period needed for delivery of the shares. How quickly (or if) these extra 14M shares might end up with organizations willing to loan, and how quickly their appearance would result in lower loan rates or returned shares is something that I do not profess to know. We're all left reading tea leaves until the open short interest data comes out... and looking in my cup, I realize I'm drinking coffee this morning. So I could be way off base.
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Post by traderdennis on Apr 17, 2018 14:31:41 GMT -5
Trading volume has been pretty low and price isn’t moving so maybe it’s just slow and steady covering. Dreamboat, I’m a bit confused by your supply comment. I thought I learned from members here that the buyers of the new 14M shares/warrants shorted before they took possession of the shares and would use the shares to close out the short position after the stock dropped. Isn’t that what we just witnessed the last couple of weeks? So now, if those short positions have been closed and they have taken their profits shorting the 14M shares, they are now making those 14M shares available to be loaned, therefore more supply than demand and the falling interest rate? Do I understand this correctly? Shares do not have to be delivered immediately when a short occurs. My understanding is that someone with information about a PIPE cannot short until they are obligated to the PIPE (i.e. signed documents). Shares are normally delivered quickly after the PIPE is signed, usually quick enough that they could be used to deliver on the short before shares actually would need to be borrowed. I don't even think this would be considered a "naked short" since the shorter would know where they will obtain shares for delivery. At least this is my understanding. Bottom line, that sort of shorting doesn't necessarily need to effect borrow rates. Perhaps there is a potential that some organization might have shorted early based on a general understanding that all of us should have had that dilution would be necessary before that organization would be prevented from shorting by virtue of having insider info about the offering but not yet obligated it. But that exposes them to trading risk that apparently is not usually the operating MO of these organization. I do not know first hand, but others have said these entities would rather do the short term nearly risk free maneuver of waiting until they have a guaranteed discount on the shares (but not yet public information) and then short briefly to cover the time period needed for delivery of the shares. How quickly (or if) these extra 14M shares might end up with organizations willing to loan, and how quickly their appearance would result in lower loan rates or returned shares is something that I do not profess to know. We're all left reading tea leaves until the open short interest data comes out... and looking in my cup, I realize I'm drinking coffee this morning. So I could be way off base. As Schwab/Fidelity retail margin customers acquire part of the 14million shares, per their margin agreements the brokerages have the right to loan shares and collect the short interest. So even if shorts are not covering, there is less demand to pay interest out on shares. Also it may be possible they can collect short interest on their own ETF's if MNKD is tracked.
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Post by boca1girl on Apr 17, 2018 16:30:48 GMT -5
As Schwab/Fidelity retail margin customers acquire part of the 14million shares, per their margin agreements the brokerages have the right to loan shares and collect the short interest. So even if shorts are not covering, there is less demand to pay interest out on shares. Also it may be possible they can collect short interest on their own ETF's if MNKD is tracked. I thought the 14M shares were sold to Sabby and other strong health care funds. Are you suggesting that they’ve already sold off some or all of the 14M shares?
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Post by traderdennis on Apr 17, 2018 18:53:36 GMT -5
As Schwab/Fidelity retail margin customers acquire part of the 14million shares, per their margin agreements the brokerages have the right to loan shares and collect the short interest. So even if shorts are not covering, there is less demand to pay interest out on shares. Also it may be possible they can collect short interest on their own ETF's if MNKD is tracked. I thought the 14M shares were sold to Sabby and other strong health care funds. Are you suggesting that they’ve already sold off some or all of the 14M shares? Sign the deal, short the stock, cover the short with the pipe placement. They probably were short before pipe. A 13G is required if you control greater than 5% of the stock, but that can be with either shares or warrants to purchase shares which I believe is what Sabby triggered the 13G. Will we ever know for sure. no. Do we have a major holder of stock from when we had the offer at $6...Kent Kresa is about it. Also expect those with warrants to go short prior to October if the stock price is above$2.38 and less than $3.25. Game theory suggests to take the short free roll during the six month exercise period as opposed to just converting and selling. If the price is jnorth of $3.25 then maybe you will see conversions without short selling during the conversion period.
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