Exro Technologies Inc T.EXRO

Very interesting note from my Brokerage

[Markcalgary]

I am a former Calgarian now living in the US.  I use the IB broker platform.  i use OTC listed Canaian stocks instead of the Canadian version.....save on exchange headaches.  Got a very interesting note from IB today regarding their stock loan program.  This is all about lending out your shares to someone who wants to short the stock, and earning fees from it.  I dont participate in these programs, but find it very interesting that out of the 25 or so holdings I have, these are the ones that they sent the note about.  

Lived in Canada until just a few yeas ago....never had a note about lending from any of the brokers I used there.   

If you want to make sure that your shares cant be used to assist short sellers, make sure that you tell the brokerage that you hold the shares at the you want your stock segregated....no lending. 

It prevents the brokerage from profiting from the loaning of shares that are actually meant to be used to bet against you.  

Quote

You could earn up to USD 3,632 annually on fully-paid shares of stock held in your account by joining IBKR's Stock Yield Enhancement Program.

 

SYEP allows IBKR to borrow fully paid shares from you in exchange for US Treasury or cash collateral and lend the shares to short sellers who will pay to borrow them. Each day that your stock is on loan, you will be paid. You can sell your loaned stock with no restrictions.

The highest income-generating^* stocks from lending are:

 

Symbol	Estimated Income
EXROF	USD 3,195
NSRCF	USD 395
TOLWF	USD 17

End Quote

GLTA
MC

[Danno13]

I have a sell on all my Exro shares at $98.00.This way if you have a sell they can't use your shares to short

[QuantumTime]

Hey if as some are3 saying EXRO is a $200 stock then maybe we should all put sell orders in fdor $198 rather than $98  lol

[Moemoney42]

Unfortunenately that's not true.. a brokerage CAN still offer your shares for shorting.. as that price target will never be met anyway.. not sure why this misinformation is still around but its like a bad rash.. just won't go away.. LOL..

[Moemoney42]

That being said.. if you put your shares up at a reasonable price level, I doubt the brokerages will offer them for shorting as the price could get hit.. that's part of the reason you see orders appear then disappear in seconds IMO.. I don't have the time or bother to baby sit my sell orders to play that game unfortunenately.. :-/

[Markcalgary]

Two things about my post on this..... 1.  If the brokerage is willing to pay me that kind of $....imagine what they are making everyday off the shorters?...the people who are betting against us.... WITH YOUR STOCK. 2.  In either your settings in the brokerage app, or a quick call to the brokerage back office, you can take away the fuel for the shorters for all your stocks and it costs

[Danno13]

Article from Seeking Alpha: What can you do to prevent your shares holdings from being shorted?   Now, what can the average personal investor do to stop their own shares being shorted, believe me, your own broker, if approached, WILL sell your own shares that they hold on your behalf as a nominee account. There are two things you can do, the first is to certificate them but this is

[mahoon]

Now somebody correct me if I'm wrong but I've always thought that if your shares were in a cash account and not in a margin account that they cannot be borrowed and shorted. 

[Kadiddelhopper]

HHmmm..., have a Cash/Margin account, but do not use the margin ... I just set a Sell price on my stock to hold it at bay from the Shorter, but don;t really know if that actually is effective.. Try to set it at a reasonable outside level but not at crazy outlandish price. as someo0ne else suggested a few posts preious.

[tamaracktop]

Don't misinterpret my point, but your comment raises a question. I've seen many people get themselves into very serious trouble by over-extending themselves using margin, but used judiciously, margin is a very viable tool. Exro isn't yet marginable to any great extent, some firms might give it 25% margin value over $2.00, but if you have a diversified portfolio it often makes sense

[ace1mccoy]

Bang On TT ! Good explanation.   Everything you raise is good risk / reward leverage and it's good for deducting tax interest.  In my case , have a CAD margin account with big cap diversified portfolio as marginable assets and have margined ( borrowed ) bought EXROF in my USD margin account. My monthly interest is greater than 1000$ USD ( Exro). Eventually , I will trim the stock

[beaner53]

NO GUTS, NO GLORY!! Added that motto to my list Ace. I suspect many of us here would say the same thing. GLTA    

[Pandora]

If I could afford a $1000 a month on an interest payment I would think I had died and gone to heaven.:-)) Not a high roller here!

[ace1mccoy]

Understood Pandora. It's a leverage strategy more than anything.   One doesn't actually "pay" the monthly interest amount. That amount is added to the "Running Total "figure. One doesn't actually settle up until enough stock is disposed of to Zero out the balance owning.   

[Markcalgary]

Doesnt the order have to be placed every 30 days as the order expires? MC

[govtlithium]

My broker will hold an order for one year . I usually put a in a limited order for 100% higher than the current ask. so the shares cant be used for shorting. Im not doing that with exro because if people want short this stock they can fly at it imho. It might not work out in thier favor however.

[Reddale]

That is interesting,  years ago (when you got paper trade order confirmation slips)  the transaction would have the word "segregated" written in beside the share call symbol and number you bought Guess what you are saying is that signifies your shares are not lent out for shorting or whatever Doesn't setting a high sell price on shares do the same thing, e.g. set a sell

[mollyriley]

wow that was VERY enlightening I must say and a little scary. I generally hate the whole idea of betting against a stock but better understand how it happens. Thx

[gossamer18]

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