Fidelity's trading desk told me that there are no ARCP shares available for shorting. All gone. I filed a complaint with the SEC to review the price manipulation and if naked shorting was taking place. I'll post the results of any feedback I get from the SEC.
If ARCP is being manipulated, then so is about 80% of the whole REIT sector. Many equity REITs are down 20%-33% since taper talk began, some even more. Most mortgage REITs have been crushed in that same time. Why would the SEC investigate trading in ARCP when it's pretty much behaving like its peers? Look at O and NNN. Are they being manipulated ? O down 33% and NNN down 25%. Not to mention ARCP's acquisition binge.
Just because Fidelity doesn't have shares available for shorting doesn't mean other brokers don't have shares available to short. In fact, you can bet that a lot of the decline since the bond sale is due to the buyers of the converts have shorted enough stock to lock in a hedged profit. That seems hard to do with a large dividend every month to deal with, but certainly not impossible. Buy the converts at 3% yield, short the stock and short enough options to cover the dividend payments. That's most likely how the converts got sold, and there's no reason to expect it to show up where you can see it on a retail screen.
re: new convert issue-- any advantage over common? @66.02062 shares per $1000 bond principal, equates to $15.15 conversion value--- a heftu near 15% premium over common pps ( 3.75% yield) I would stick with common shares
Good luck with your complaint. I have filed a number of complaints over the years about insider trading and market manipulation after uptick rule went away. Never heard a word from any of them. SEC won't investigate as this means work for them and they will not do any work that is not mandated except on scale of a Madoff, Enron, etc (after the fact)
probably not. Lack of an uptick rule will be the end of our economy one day when a rogue nation decides to infiltrate our system and nothing to stop its collapse. SEC was criminal to take it away and is equally criminal for not putting it back