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Heckmann Corporation Message Board

  • messih1 messih1 May 8, 2013 1:35 PM Flag

    Increasingly Costly To Short HEK Shares

    Not entirely sure what to make out of this. I'm long about 50K shares. About nine months ago, Fidelity contacted me to see if I was willing to let them pay me to lend out my shares. I did. Initially, they paid me 6% to do this. About three months ago, they increased the interest rate to 9% and then, in mid-April, they increased it again to 14.5%. If they're paying me 14.5%, you know that they're getting much more than that -- like 25%+. I can't believe that shorts would view HEK as such a strong short candidate that they would pay over 25% (annual rate) to borrow the shares. Seems crazy. Obviously, if I can hold HEK and get the equivalent of a 14.5% dividend, I'm happy to hold long-term and watch it play out.

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