I received the package from Schwab last week wanting me to lend my shares just like some other posters. Here's my question for the message board....is this a good thing or bad thing, or do we just don't know.
Is Schwab needing shares for other brokerages to cover their previous naked shorts? My understanding is short investors are not on a time table to cover their shorts (unless the brokerage forces them) and since the price has gone up the naked shorts now need to actually find some shares to be legit. Since I am long I would find this as a good thing.
Or are more brokerages wanting legit shares for their investors to short in the future? This would be a bad thing for longs. I had a friend that was requested to lend his ACAS shares and the stock tanked tanked shortly afterwards.
Or do we just don't know?
The Schwab paperwork does not lend your shares in a normal way. You loan the shares and temporarily forfeit your ownership legally. This turns your qualified divs into unqualified Divs and removes your voting rights. You are a creditor of Schwab after the loan. So not the normal procedure
Thanks mkttdr1, I got tired of sparring with the paid bashers several months ago.....after all, they are getting paid for their efforts and I am just a interested retail investor trying to defend my judgment for buying my measly shares! I went off to my other message boards and just let the CALM bashers wear their fingers out. CALM has been an education and I'm still interested in how the PPS will turn out in light of Schwab and I'm sure other brokers requesting the lending of shares. Interested enough to hold my shares for a little while longer.
You don't have a shred of evidence to support your claim. Pure conjecture. Schwab does this to make money, plain and simple. The other brokerages pay them to borrow shares, which is why Schwab is offering folks interest for lending CALM shares. They pocket the spread. Nothing sleazy or illegal about it. Happens every day.
I don't necessarily think it is Schwab. I had called their securities lending rep and she said that there were other brokerage houses looking for CALM shares, not Schwab. Of all the brokerages I believe Schwab to be on the up and up as they have way too much to lose to be involved in naked shorting. I could be wrong, but that is my opinion based on working with them for some time. Either way, how do we know that the shares are needed for past naked shorts or future shorting?
Wants interesting with Schwab, is so many individual customer service brokers are independently long CALM. 4 of 7 of the brokers I have spoke with in the last few weeks have personal investment accounts with CALM OTM call options.