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.
Messih, I would suppose that your broker is getting 1.5 to 2 points over around 16% for cost to borrow that’s around 64c from $4 shorts need to be at $3.36 just to break even this is very promising news. At some point if not already shorts will have to make a decision on costs and should a margin call happen or hek appear on the reg sho list for 10 days due to shorts failing HEK it might initiate force covering. This may account for the action today Thanks for the info GLTU
SAS this was your chance for actual logic behind a short squezzzzzzzz and you let it slip away LMFAO
When I go on Fidelity's site and put in info to set up a short sale of HEK (I'm long and have no interest in this but just to see what it would cost me), Fidelity says the "Est. Annual Interest Rate" for doing this is 30.5%!!! I think Fidelity is charging close to 30% to lend out my shares and then giving me approx. half of that. I guess if someone was looking at HEK as a short-term short, maybe you could justify paying 2.5% for a month or two but longer-term, it's insane. I think the basic message here is that HEK shares are becoming increasing difficult to locate for shorting. In the meantime, I'm happy to get 14.5% interest as long as it will last.
Hi messih--just got the first sentence and half of your "disappeared post" from yesterday. It sounded like it contained some good info. I know it's a PITA but I'd be very interested in what you had to say. If you wouldn't mind re-posting, even just reveiwing the high points, I'm all ears.
Wish my Vanguard guys would call me with that kind of an offer. I'd do 14.25% in a heartbeat. And g, I'm more than happy to "enable" shorts to eventually lose their money. Seems like a decent trade-off to me. Convince me otherwise. Call me Vanguard. Me and my shares are available.
I suggest you not loan your share they do this so they can short more they need your shares so you are enabling shorts to bet against you. Its good to see the 50k is not on margin or they can loan your shares for free. They must be having a hard time finding shares
PS any higher and they will be forced to find the door
I have been missing for awhile, I hope all is well with you and ZAR. Well, I see HEK is still a terrible oil, water or gas play. Please tell me you finally agree that HEK is #$%$ and you moved on??? I hope you still have APPLE? I see APPLE over 500 real soon. ARNA is junk too, just flatline. I think it might bounce a little, but no way 10.00 anytime soon. i hope the buyout rumors are true. Anyway, just wanted to stop by and wish you well.
if you chat with ZAR, please tell him "Hello" from me....Thanks Gary!!!
Sentiment: Strong Sell
Say hello to naked short selling when the stock is in short supply....naked short selling is an effective tool in knocking the price down with out owning the shares an no intention of buying them back for delivery.,,,SEC could care less....but they do keep a lazy eye on rising failed to deliver notices.