Hey Terry,
Hope you're enjoying your weekend. Just getting caught up on some posts. You're doing a great job with the thread.
>>With retail short selling, you will not get a call from your broker saying he wants his shares back now, or next week, or whatever. There will be no pressure to close the position.<<
Just wanted to add a few comments. I hope you won't mind if I "mildly" disagree with your above statement. :-) While it's not a common occurrence, the brokerage firm does have the right to "buy-in" the shares that were sold short at any time without notifying the client in advance. This is because the lenders of the equities being shorted have the right to reclaim these same shorted shares at any time.
On a side note, it's rare, but a brokerage firm can also charge a fee (called a negative rebate) to short a stock that's difficult to borrow. Again, it's not common, but certain brokerage firms will, indeed, charge the client if the shares that one wants to short are in limited supply. The list of securities that are subject to these fees can change daily.
By the way, a while back you had been talking about KKD as a good short. I know you feel it's bottomed out at this point, but during that "fertile" shorting period, I did attempt to short KKD at one point. Much to my disappointment, I was informed by my brokerage firm that they didn't have any shares to short. Is this common? I no longer wish to short it, but I was admittedly bummed to not even have the option of doing so during that particular period of time.
IHSC |
