Where are the shorts going to find 26 million shares ? over 95% are owned by institutions and they will not sell cheaply
The dollar is strengthening against all currencies because the US economy is growing. It is very unlikely the Euro will strengthen against the dollar. On the other hand when the perception is that the dollar will strengthen, foreigners see US stocks as a good investment because it has the added benefit for them of the strengthening dollar making their investments better when they sell and repatriate the money to their home country.. Overall it will be good for US Stocks.
This is what I wrote to E-trade. I hope it helps and think others with adjusted options should write their bokers
I have some NOK options that are adjusted. I note that when you go to buy these options the following message comes up.
The number of shares per contract does not equal 100. Please call customer service at 1-800-ETRADE-1 to place this order with a broker.
That statement is UNTRUE. The truth is what you say when you click on the option to see what it is on your site:
100 Shares of (NOK)
Cash Deliverable of $30.16
Effective strike of this contract: $11.70
By causing a call to a broker you are discouraging sales of these option to my detriment.
It is causing problems in that the NOK 12$ option unadjusted is selling above the adjusted option when it obviously should be less as the adjusted option is better as it is effectively $11.70.
The statement you should put is something like this:
This option is adjusted and is deliverable with 30 cents and therefore the effective price of the option is $11.70.
This should be the same for all NOK adjusted options.
Again your message is false and misleading and should be changed immediately.
No institutions (own 97%) will sell, so where are the shorts going to get 27 million shares. If it goes to $500 this could be a classic squeeze of major proportions. I think north of $40 is not out of the question.
I just complained to E-trade and they are looking into it. It should say this option is adjusted and the effective strike price is $11.70 (not $12)
In Europe it may be very possible to get an injunction against any sales unless they pay. That in itself may be enough to force Samsung to pay. The US also has the ability to do that, but it maybe a bigger ask, but not impossible if Samsung displays an attitude the courts find amounts to stealing IP.
I agree, but if Apple and MS are joint venture partners the Here franchise would be worth a lot more IMO so all would benefit and it would certainly give Google a run for its money in mapping
NOK is a major company in a small country and it takes a long view on assets and their ability to make a reasonable return. HERE in 5 years may be the jewel in the crown, and if they think that is possible they will not sell for short term gain. They do not need the money and they have two other parts of the company producing profits. Too many of you think like hedge fund vultures and want it NOW not in a year or two or five. NOK is not that kind of company.
I think the deal that is possible is that MS and Apple buy 1/3 each and Nok keeps 1/3 and they do it as a JV where all will benefit. NOK should get about 6 billion for the 2/3 sold
I have owned it for years. The next news is about the price to be paid for the test. Should be out in early Oct. Insurance companies should love it since it is much cheaper than a colonoscopy. Very good management. If the amount is 450 to $500 it will move up quickly. If nearer $300 it will be a disappointment.
try New Zealand cannot short a stock since it is always held in your name not street name
Glasses if they are better than googles could be a game changer. The market may not be as big as phones, but it will be big
Glad they are clarifying it as I was disappointed in the drab way (without figures) they said "materially" affect their ability to write insurance. Now it turns out it may be 300 million and that is about 6% and not that material to me. Very bad stupid PR for us longs.
The draft would make it difficult for MTG to write for the gov under draft rules. Likely most couldn't comply. Reading the MTG explanation a small change regarding forward insurance will mean MTG meets easily.