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Sorry for late response Alfa - busy day. All fees (should) go into the ETF cash account as any income would do. I know a few big index houses who do exactly that.
there logical argument is that they are long term holders of these stocks and really do not care much about short term falls (other than the need to rebalance), so why not make some money from a loan fee. Also the larger fees tend to be payable on stocks that are expected to fall or are already being shorted.
So, if you hold 5% of your portfolio in Boeing, because you are a US tracker, you are stuck holding it regardless of recent market sentiment. So they make a little fee (loan) income to lessen the burden..
Certainly do Alpha.
Time is money.
Disgruntled share holders will also start asking the question "well what are you going to do about it.............. ?"
The lights are definitely not going off for Fortune and the Bushveld steam train.
993444 - how do the fees get passed back to the ETF fundholders - do they get a monthly interest payment ?
Vaneck will receive a fee for loaning shares, the current loan fees for every stock are available to an investment manager. If Vaneck have made the long term decision to hold BMN then they simply make a short term fee regardless of SP direction, whilst benefiting from the upside in the longer term SP growth, nothing wrong with that and the long term fund holders benefit. Loaning stocks to shorter by trackers is very common and is both a way to raise a little cash and a legitimate trading style. The odd thing is probably why they changed their mind over the inclusion of BMN, an index tracker should really hold the constituent parts all the time.
I don’t short myself but I do trade the dips and I am currently buying BMN not selling
SG - do you think that having an unreliable electricity supply might encourage some of these mines to install their own PV farms backed with VRFB energy storage ?
https://www.google.co.uk/amp/s/www.timeslive.co.za/amp/news/south-africa/2019-12-09-sa-mines-shut-operations-because-of-eskom/
SA's mining companies shut their underground mining operations and processing plants on Monday night because of unprecedented power cuts by monopoly electricity supplier Eskom.
of course the FCA short notification requirements only kick in for a public notification at above 0.5%
In November there was still 0.27% of the company shorted so hopefully something to help the SP tick up a penny.
(according the euro clear link Gkb47 posted)
there is no requirement for anyone loaning out shares to shorters to tell anyone.
But why did Vaneck start buying that particular week Alfa, are you thinking it was coincidental?
Wasn't it the RNS, confirming Mokopane was to be granted a licence on the Monday, that fired the starting gun for Vaneck?
Whatever the timings, we've certainly had a weak run since though, whether through MM actions, holder impatience or institutional shorting I'm not sure.
However what I do know is that those who believe in the business model are being given a further opportunity in the short term to invest before BE revenue streams and BMN production expansion kicks in.
Which suits me as I'm just diverting what I can from my income on a monthly basis to accumulate at these levels.
amen to that RK :-)
for the record the rise from 22p to 27p on the 21st October was most unlikely to be anything to do with any RNS's but simply the Market Makers spiking the price up on the buying by Vaneck which started that week - in the following days the buys reported by Vaneck were:- 500,000 then 3,000,000 then 3,200,000 then 2,738,654.
I believe that after Vaneck bought these shares to reflect the fact that they put BMN back into the REMX Index it is quite possible that they will have immediately then loaned them out to someone who was uses the shares to short the price at the 27p level whilst attempting to drive the SP down to the 20p point where significant spreadbet holdings have in the past been forced into a cash call.
In this way it would appear that Vaneck ETF fundholders are getting the rough end of the stick - first they get spiked on their share purchases then their holdings get shorted courtesy of their very own shares they have forked out for. The only question that remain in my mind is who picks up the rent from the loaning out of the shares from the Vaneck fund - does this income make it back to the ETF fundholders (though I can't quite see how as the value of their holding seems purely defined by the SP's of the fund components) or do the operators of the ETF, Vaneck themselves, get to keep this income ? If the latter then I am struggling to understand why this is not considered a huge scandal.
Terrible news for South African people.
Hopefully they can accelerate their timelines and get on with the BESS program with it now being a crisis.
They can start storing some of the energy generated off-peak at the least. BMN are ready and waiting, along with the World Bank with the funding.
Just hoping big decisions aren't being delayed until Mid-January when the new CEO for Eskom takes office.
..and hopefully focus the appropriate minds that they need a shed load of VRFB storage...and quickly
It’s a reference that Eskom had to resort to load shedding stage six tonight
https://www.thesouthafrican.com/news/what-is-stage-6-load-shedding-how-long-eskom-how-it-affects-us/
Ah cheers ls.
You missing nothing, he's just a two bit trader without a p to p in, who's not even a holder, just a chancer after reading an SA news article about rain saturated coal affecting power stations.
Outages haver never affected BMN as pre planning was put into operation a long time ago.
Am I missing something here or what. Feels like I'm in the twilight zone.
Yes damn bmn, can't believe they aren't generating enough electricity. Useless!
Oh and as you said you would add if it gets silly, well maybe you should actually find out what they do first.
If anyone ever needed a reason as to why bb posts are all to be taken with a massive pinch of salt..well here you go
Harhoo I have some advice that you.
Don't drink before you post.
...what?
frankly VV because I don't see the link. We have had 18 months of a stream of good news that has has pretty well no effect. Alfa keeps demonstrating the level of manipulation, so if you want to believe a big jump right now is linked to a particular RNS, then fine... I don't.
The SP will rise however long it takes as the cash generation is so high relative to pretty much any other AIM company. I would hope that a significant BE announcement will have effect, but personally I don't expect real movement until we get of SETsq or even better move to the FTSE.
In the end, we each have our views - mine is just as likely to be both right as wrong as yours is
MM's please can you keep the price as low as possible so that I can get as many shares as possible, thanks very much.
Fsramog, the sharp rise was on the day of the Mokopane mining right RNS announcement. It held for that week at 27.25. A week that included other RNS re Vanchem.
Obviously and disappointingly that rise has not stuck, but the point was that the initial positive RNS do have the power to move this SP. I don't know why you would want to argue against that assertion??
@VV.... That rise to 27p was before the rns's... Then a sharp drop back... All looked a like a hard final shake for closing shorts
All the good news has had no effect at all