L&L Energy Inc. (LLEN) and FAB Universal #$%$) were halted by the Exchanges following major fraud allegations by GeoInvesting and Alfredlittle. Investors caught long either of these stocks may be missing one surefire and simple way that they can earn incredibly high yields while they await the Exchanges’ delisting determinations.
According to Interactive Brokers’ Stock Yield Enhancement Program, investors can lend their LLEN and #$%$ shares to traders who are short the stocks:
“Each day that your stock is on loan, you will be paid a loan fee based on market rates. You share a percentage of this with IB (currently 50%) as a fee for managing the program.”
The current loan fees based on market rates for LLEN and #$%$ have recently exceed 60% and 90%, respectively.
In the past, only institutional investors could take advantage of such a remarkable program. Through my research, I have come to the conclusion that the Interactive Brokers program is an incredible value for investors. According to Interactive Brokers, all margin accounts and even IRA accounts qualify for the program.
Even if you currently hold LLEN or FAB shares at another broker, you still have the right and ability, despite the current trading halt, to transfer those shares into a newly opened Interactive Brokers account and begin to collect loan fees on them.
Personnel at Interactive Brokers explained to me that the entire process takes only three simple steps:
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