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Anworth Mortgage Asset Corporation Message Board

  • marionpolk2000 marionpolk2000 May 17, 2004 9:43 AM Flag

    ANH - HEAVILY shorted?

    Got my dividends posted today, & virtually all of them were identified as "payment in lieu of dividend", meaning that virtually all of my shares have been loaned to someone else & sold short.

    Is it time we all switch our ANH to our cash accounts?

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    • I just want to understand the logic. Apparently there is none.

      I can neither make it easier nor harder for shorts to do anything. Neither can you.

      So, I guess you just hate shorts and are fruitlessly trying to exercise control over them. Have fun.

    • Why are you so concerned with my worries?

      Do you have a personal interest in making it easier for shorts to avoid covering?

      OLD short data may be less relevant than recent experience. The short percentage may be misleading if a significant percentage of shares are held in IRA accounts and not available to shorts.

    • "If a high percentage of my shares have been shorted, then a high percentage of AVAILABLE shares may have been shorted."

      Not really. The assignment is up to the broker and not necessarily evenly distributed. Between dividend dates, the broker meets his obligation if he holds enough long positions to offset the shorts. When the dividend is paid he makes the dividend assignment by whatever algorithm is convenient.

      According to YAHOO: Short % of Float (as of 7-Apr-04): 1.95%

      That is not a majority. Therefore, there is no relationship between assignment (since your's is large) and the percentage of available shares that have been shorted (since that is small). Or, you are the majority holder for your broker. How likely is that?

      Still you haven't answered the question: What's it to you? As you can see: Any attempt you make to impact the number of short positions has, at best, a nominal impact. Why bother yourself with it?

    • If a high percentage of my shares have been shorted, then a high percentage of AVAILABLE shares may have been shorted. (Shares held in IRA's should not be available for shorting.)

      Heavy shorting of a stock does drive the price down. When those shorts cover, the price is driven upward.

    • Your broker must have sufficient shares in aggregate. As long as the barker has any shares to cover the short there will be no impact.

      But you have not answered the bottom line: What's it to you? Why do you care? It's no skin off you nose. Why waste the energy worrying about nothing? I really see no benefit in worrying about it.

    • Since virtually ALL my shares have been shorted, if I can force my broker to return them to me I can have a SIGNIFICANT impact on the short who will be forced to cover!

    • Why do you care? Some are short. Most are long. You can really have no significant impact on shorts.

    • This is not true. I have had a GTC sell order in (@ $ 14.58) and my shares were still loaned out to a short seller.

    • If you receive "payment in lieu of dividend" on "qualified" stock, Ameritrade generously compensates you for the tax difference.

      If the dividend is not qualified, who cares who pays it?

    • go ahead.Is your cash account going to pay you 15%?

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