I just noticed that Fidelity added 1.7 million shares in the first quarter...
They doubled their holdings of 1.6 million at the end of 2004...
So at the end of the first quarter, they had 3.3 million shares of blti with an e...
That's appx. 16% of outstanding shares...
Seems that the extra e in blti...e hasn't scared them away...
After all I have done for you - you won't vouch for my options comments. :-)
Before the CBOE standardized option terms, strikes and expiration all options transactions were individually negotiated. I tried that before the CBOE existed. It was a very illiquid market. But that was long before the derivatives market took off.
But believe me - the big derivatives (including options) are done in private transactions.
FIDO is probably adding here in very small dribs and drabs possibly using their interest payments to add. Makes good sense if you have a truly long perspective. If I were short I would buy now why you still can get some shares for under 10 dollars as long as you don't need more than 100,000 or so. Think about it, you are really in the money on paper and the product is for sale but the shelves are empty...
"FIDO buys and pps goes nowhere. Make of it what you will."
if, IF, the buy-lend-out-to-shorts-who-sell scenario is correct, then: shorts sell and the pps goes nowhere during that same go nowhere period you reference. that's what i make out of that possible scenario.
IJ, you beat me to it. the guy responded with the following which has that private options transaction bit in it. no, i'm not vouching for the accuracy of either of you on that, i had no idea of that availability before and i have no idea how it all works now. regards
Re: Q1 institutional holdings
by: nice_guy_with_an_mba (M/Research Triangle Park, NC)
Long-Term Sentiment: Strong Sell 05/17/05 11:25 am
Msg: 34610 of 34611
<< i myself am not sure he's right as he also questions the ability of mutual funds to have short positions which i believe is incorrect. >>
If you're really interested in researching this matter, all you have to do is to find the Fidelity fund that holds OCA and look at the prospectus for that fund.
When you do so, I'd bet that there are two provisions that will surprise you.
(1) The fund will have the ability to engage in securities lending practices, meaning they can lend the OCA shares out to short sellers for a fee, which Fidelity does all the time and which is a major profit center for Fidelity; and,
(2) The fund will have the ability to hedge its equity positions, either through the purchase or sale of put or call options and/or other derivatives.
Fidelity generates so much business for the folks on Wall Street that if they want to have a broker create unlisted call or put options for OCA, all they have to do is make a phone call and the brokers are more than willing to accommodate them. And yes, it's all perfectly legal, too.
Like I said before, if Fidelity really liked OCA, they'd own 10x or 50x or 100x more OCA stock than they're holding now.
Posted as a reply to: Msg 34606 by rivvir