How often does it happen that shares are actually recalled? If IB has a large shareholder demanding their shares back, IB wouldn't first try to find a different shareholder to borrow shares from, give those shares to the shareholder recalling the shares, and then adjust the interest rate for shorting?
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TheTalkingMule
Distributed Energy Enthusiast
As of yesterday, for my Fidelity account, TSLA is at 4.0%, and SCTY finally got to 41%.
I bought more SCTY - where else can you get a 41% ROI? As long as the bottom doesn't fall out of the stock price...but there aren't (m)any shares left to short, right? So the shorts shouldn't be able directly manipulate the stock price, right?
I bought more SCTY - where else can you get a 41% ROI? As long as the bottom doesn't fall out of the stock price...but there aren't (m)any shares left to short, right? So the shorts shouldn't be able directly manipulate the stock price, right?
Ok, help a noob out.
I recently rolled over a 401k to Fidelity. I'm slowly getting the money reinvested and have thought about moving some of my TSLA/SCTY investments to Fidelity to take advantage of them borrowing/paying interest on the shares.
I talked with someone on the customer service chat this morning and they said:
"Here at Fidelity, we do give our clients the ability to borrow shares for short selling. However, we do not offer an incentives program for clients that hold long shares of a stock and want to lend their shares to other investors for short selling."
So... Can anyone point me to how to sign up for this? What the requirements are, etc?
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Check thecterms and conditions. It could be that you've agreed to letting Fidelity lend out your shares without you getting paid.
Only requirement I'm aware of is a minimum $250k account value. I PMed you (or at least I "started a conversation" with you - is that the new PM?) some contact info you can try.
I'm in the process of moving my non-IRA holdings (including TSLA and SCTY) to Fidelity - they were happy to help with all aspects, including guaranteeing I'm enrolled in the FPLP. They don't guarantee your stock will get loaned out, but demand for SCTY (and probably TSLA) is so strong that you it almost certainly would be). I also get a cash bonus for transferring the accounts to them.
You can also try calling/visiting your local Fidelity office - you'll probably get better support face-to-face...
You can also try calling/visiting your local Fidelity office - you'll probably get better support face-to-face...
It's invite only but if you meet the minimum requirements and find a sympathetic Fidelity rep I'm pretty sure they can make sure you get an invite...
So maybe there hasn't been significant covering by shorts yet. This has been fairly stable TSLA interest rate for a couple of weeks right?
SCTY now 45%. I think that means Fidelity is charging 90% (they keep the other 45%).
Wow. I shorted Blackberry after the iPhone came out - that was scary enough without being charged 90% interest on my position...
Wow. I shorted Blackberry after the iPhone came out - that was scary enough without being charged 90% interest on my position...
TheTalkingMule
Distributed Energy Enthusiast
Delicious. Anyone recall where TSLA interest peaked in 2013 prior to the squeeze up to $100? If I'm not mistaken it was somewhere north of 63% interest and then......zoom.
SCTY needs to be conservative and realistic with their guidance/projections, but I'd rather not see these shorts receive the gift of another earnings report tank. Lets hope there's a concerted effort to get some extra commercial MWs on the books prior to close of 1Q16, 180MW should be easy enough to top.
Maybe announce a bump in 2016 guidance to 1.3GW installed? That's still less than 50% yoy growth. Considering they're in this existential range for maybe another 6 months it might be worth it to throw out a few profit neutral projects to corporate commercial clients. Lose $500k in margin to trigger a "game over" short squeeze? I guess it's good that I'm not in charge.
Should be a fun couple months!
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Delicious. Anyone recall where TSLA interest peaked in 2013 prior to the squeeze up to $100? If I'm not mistaken it was somewhere north of 63% interest and then......zoom.
SCTY needs to be conservative and realistic with their guidance/projections, but I'd rather not see these shorts receive the gift of another earnings report tank. Lets hope there's a concerted effort to get some extra commercial MWs on the books prior to close of 1Q16, 180MW should be easy enough to top.
Maybe announce a bump in 2016 guidance to 1.3GW installed? That's still less than 50% yoy growth. Considering they're in this existential range for maybe another 6 months it might be worth it to throw out a few profit neutral projects to corporate commercial clients. Lose $500k in margin to trigger a "game over" short squeeze? I guess it's good that I'm not in charge.
Should be a fun couple months!
As a sober investor one should always remember that a very high short interest, in general, could also be seen as a statistical indicator of a high risk of bankruptcy/failure. Now I'm with you here, long SCTY both shares and some LEAPS, but I'm just saying it's not IMO a risk free play.
Agree. I have essentially no worries about where TSLA is going in the future but SCTY is a different animal. I don't understand it as well and what I do understand is not nearly as compelling as the TSLA story. But I'm still expecting some additional upside in 2016.
TheTalkingMule
Distributed Energy Enthusiast
People will look back and realize the exact opposite is true. TSLA is reshaping the world, but we have to remember their mission(and model) is to bring the entire industry with them. A year or two from now SCTY will be standing alone as the market owner for lease-type residential solar installs. Investors just don't fully appreciate the model yet or what the grid will look like in very short order.
If you understand and believe in the model you should be overjoyed with the current level of shorting.
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