Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Forgot to say. What a lovely day. Thank you my lovely TLW shares.
Maintenance margin requirement rules for short sales add a protective measure that further improves the likelihood that the borrowed shares will be returned. In the context of the New York Stock Exchange and the Nasdaq Stock Market, the maintenance requirements for short sales are 100% of the current market value of the short sale, along with at least 25% of the total market value of the securities in the margin account. Keep in mind that this level is a minimum, and the brokerage firm can adjust it upward. Many brokerages have higher maintenance requirements of 30% to 40%.
A short for value of £50,000 (1000 shares at £50) would require £50,000 to be deposited in the margin a/c + £25,000 initial margin call = £75,000 held in the margin a/c. If the shareprice increased to £75 a margin call of 30% of the value of the shares would have to be paid into the margin a/c (£75,000 x 30% = £22,500) so then there is £97,500 in the margin a/c. This money is held there and cannot be used for anything else.
Must be getting expensive, I think.
GLA (except shorters) Jaffa
Good news tomorrow on results coupled with FTSE 250 listing on Friday & rising OP too boot!
Be still my beating heart............
GLA (except shorters of course)
Polar bears don't.
Roxbury,
Always enjoyed a 3 way.
GLA
Yes, agree on his short position. But if that's balanced with an amount of TLW convertible bonds, he won't be too much out of pocket at the end of the day. What he loses in the shorts is covered by the gain in the CB's. They work on fine margins with those positions.
Either way, not bothered by the shorts, just the prospect of TLW building nicely.
GL next week.
His name should be Odeous. He's not nice people.
Even I have been surprised by the speed this has recovered. Delighted to be in TLW as it flies away!
Never liked those hedge fund types, and although they won't be as exposed as some on here like to think, I hope they do lose their shorts eventually.
Enjoy your weekend. I will be toasting TLW this eve.
As long as the TLW convertible bonds have increased in value, the short losses are offset. if the convertible bonds have devalued, then they may be in for a kicking, but that would be unusual.
Great day for PI's & looking forward to next week already.
GLA, Jaffa
Still persisting with the shorter nonsense. Who says Odey or Pictet are not making a profit? There's more than one way to skin a hedge.
Example of Convertible Arbitrage
As an example, let's say a stock is trading at a price of $10.10 in the current market. It also has a convertible issue with a face value of $100 and is convertible into 10 shares at a conversion price of $10; the security continues to trade at par ($100).
Assuming there are no barriers to conversion, an arbitrageur would buy the convertible and simultaneously short the stock, for risk-less profits (excluding transaction costs) of $1 per $100 face value of the convertible.
The arbitrageur would receive $10.10 for each share sold short and would be able to cover the short position right away by converting the convertible security into 10 shares at $10 each.
As a result, the total gain per $100 face value of the convertible would be: ($10.10 – $10.00) x 10 shares = $1 in profit. Although one dollar may not appear to be a significant gain, a 1% risk-less profit on $100 million amounts to $1 million in profit.
To buy, or not to buy: TLW that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous shorters,
Or to take arms against a sea of sellers,
And by opposing end them? To die: to sleep;
No more; and by a sleep to say we end
The heart-ache and the thousand profit-taking trade.s
To die, to sleep;perchance to dream of profit: ay, there's the rns;
For in that sleep of death what dreams may come,of debt repaid
When Tullow have drilled and struck oil, once again.
Nice week. GLA (except shorters)
It depends on the reason for shorting. Some shorts are linked to Convertible bonds. Some hedge funds that are long on oil, take out shorts on oilies which follow Brent or WTI to cover their position in case oil reverses. (they are hedge funds after all). There's a lot of chat on here about short squeezes, shorters getting burned etc, but these short positions don't necessarily need to be pure naked shorts at all.
Nice to see the price go up but please relax a bit about the shorts. The underlying business is ok, oilprice going up nicely & when the debt refinanced & we hit more oil, lovely.
GLA
They might be long on oil
It looks like all the current vaccines, even where they don't stop people developing covid (like the recent South African study on AZ Oxford vaccine) do stop serious illness, hospitalisation & death. That will surely allow things to open up once all over 60's vaccinated. Recently, in a German nursing home, 14 residents tested positive for UK variant, despite them all having received 2 shots of Pfizer biontech vaccine. The news should not be about them testing positive! but be about the fact that no one developed serious symptoms or had to go to hospital! Keep jabbing UK & by end of March things will be looking very different.
Mmmmmm. Strange that investors in oil stocks should talk about the price of the only product the oilies produce (plus a bit of gas). I wonder why that is................?
9.44% shorts too bad with Brent at $28 and world in Covid-19 lock-down when in April 2017 they were as high as 16% with Brent at $54.
GLA (except shorters, of course)
JCB
Longish, the obvious question then has to be why no-one has/is snapping up Tullow.
51p open
63p close
Quite happy to become LTH'r if price starts moving. Fundamentals now looking ok. Just the debt which has also plagued ather oilers for a while & who the new MD is will be crucial.
Your trouble DBNO is that your too greedy. Just taken 56.20 again as nice price & not looking like dropping much lower. Traded once today of the low & now in again. Without any news will continue to float up and down.
Feel for LTH's who were caught out & hope things improve long term, with good news from March onwards. Feel lucky to have got in at these prices.
GLA