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Westport Innovations Inc. Message Board

  • wayne_lamontagne wayne_lamontagne Nov 16, 2012 10:09 AM Flag

    Short Sellers

    WPRT has a large short interest. My brokerage recently contacted me and offered to pay for lending my shares to short sellers. I have a cash account, because I do not want lend my shares to short sellers. Convert your margin account to a cash account, so your brokerage can not lend out your shares to short sellers. Cash accounts are like debit cards and margin accounts like credit cards.

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Your broker wants to borrow your shares to give to short sellers so that they can drive the value of your shares down. They make a profit. Your broker gets a commision and you get some cash. Everybody wins except all the other shareholders whose share value gets trashed. Makes you wonder how this market will ever go forward without changes to shorting.Bring back the Uptick rule and enforce the laws against naked shorting.

      z

    • Who is your broker? I'd be curious to know; their offer is a blatant violation of SEC law.

      • 1 Reply to goskiing99
      • Gos is right...But...a lot of things that are against the law happen every day on the street and the SEC does nothing, because the MARKET always corrects the perpetrators.

        The fact (if that is the case) that your broker wants to borrow your cash account shares is very bullish (more demand than supply)

        Look at the RSI readings..

        If they are greater than the 70 level are considered to be in overbought territory, and lower than the 30 level are considered to be in oversold territory.

        Then do the actual calculations (use a financial calculator)

        More of the stock has been sold than available (sold can be interpreted as short)

        This pocket (plug) will need to be filled, when I does those who are collecting interest on your shares are going to panic.

        Wayne is right in saying that you should convert your brokerage to cash instead of margin.

        Why should your broker make interest off of you?

        You could do one better and put your shares in the "streets" name, which is a bit more drastic. (harder to sell, but if you are going long term you can shrink the float/available shares by doing this) There is currently a vault that is underwater in NYC fileld with certificates in the "streets" name

        Do the RSI calculations...and if it is true, Waynes news is good to hear.

        Thanks for your post.

        Sentiment: Strong Buy

 
WPRT
11.86-0.99(-7.70%)Sep 18 4:00 PMEDT

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