SHLDQ - Sears Holdings Corp

[warrior]

We have an agreement signed with securities lending desk, directly  , where we would provide them with our  inventory, usually agreement  would be be 50% /50% on the lending rate , it is negotiable , depends on the business you give them.

For retail investors, I would assume it would be with prime broker. Where their own securities lending desk provide with list of inventories they have

 

When my SHLD shares at Schwab are lent out, I get 4% (this last time anyway). That is in my 401K account.

I'm assuming I get far less than your arrangement, but I'll take what I can get.

 

I have SHLD in a lending account with Schwab as well. I was getting 2% until August 19th when they bumped it up to %4.

1 day -935bp

7 days -1475bp

30days -1328 bp

 

 

[cubsfan]

We have an agreement signed with securities lending desk, directly  , where we would provide them with our  inventory, usually agreement  would be be 50% /50% on the lending rate , it is negotiable , depends on the business you give them.

For retail investors, I would assume it would be with prime broker. Where their own securities lending desk provide with list of inventories they have

 

When my SHLD shares at Schwab are lent out, I get 4% (this last time anyway). That is in my 401K account.

I'm assuming I get far less than your arrangement, but I'll take what I can get.

 

I have SHLD in a lending account with Schwab as well. I was getting 2% until August 19th when they bumped it up to %4.

 

yep, that is about when i agreed to lend my shares again.

 

Looks like Schwab does pretty well for themselves on the lend.

 

[muscleman]

We have an agreement signed with securities lending desk, directly  , where we would provide them with our  inventory, usually agreement  would be be 50% /50% on the lending rate , it is negotiable , depends on the business you give them.

For retail investors, I would assume it would be with prime broker. Where their own securities lending desk provide with list of inventories they have

 

When my SHLD shares at Schwab are lent out, I get 4% (this last time anyway). That is in my 401K account.

I'm assuming I get far less than your arrangement, but I'll take what I can get.

 

I thought it is required to be a margin account for the shares to be lent out, and it is not allowed to have a margin account in 401k. Looks like I am wrong.

I am using Fidelity. I will call them and see if I can lend my shares out as well.

[cubsfan]

We have an agreement signed with securities lending desk, directly  , where we would provide them with our  inventory, usually agreement  would be be 50% /50% on the lending rate , it is negotiable , depends on the business you give them.

For retail investors, I would assume it would be with prime broker. Where their own securities lending desk provide with list of inventories they have

 

When my SHLD shares at Schwab are lent out, I get 4% (this last time anyway). That is in my 401K account.

I'm assuming I get far less than your arrangement, but I'll take what I can get.

 

 

I thought it is required to be a margin account for the shares to be lent out, and it is not allowed to have a margin account in 401k. Looks like I am wrong.

I am using Fidelity. I will call them and see if I can lend my shares out as well.

 

In my cash account (margin account) - Schwab lends the shares out and I get nothing, since it is a margin account.

In my 401K account (non-margin) - Schwab can not lend the shares out without my permission, and then needs to pay me a fee.

 

I hold SHLD in both accounts, and get no lending fee for my cash account.

 

 

[Evolveus]

A recent note from S&P just to give some insight on how some of the main stream institutions are looking at shld. Low expectations with focus on retail performance.

 

Comments from Standard & Poors:

Our downgrade is based on valuation. We see promise in SHLD's turnaround initiatives, including ongoing closure of underperforming stores and investments being made in new apparel brands at Kmart, the Shop Your Way customer rewards program, multi-channel integration, and the online Sears Marketplace. However, given the weak market positioning of both Kmart and Sears, we see SHLD struggling to keep pace with its competitors in a tough retail environment. We keep our FY 14 (Jan.) and FY 15 loss per share estimates at $5.70 and $2.00, respectively, and our target price at $43 .

 

Disclosure: long SHLD (for a long time...probably too long)

[muscleman]

Does anyone know where I can get the historical short interest of SHLD?

I only found this place, but it is not as far back as I would wanted.

http://www.nasdaq.com/symbol/shld/short-interest

 

I am mostly interested in a few years back from now, when people started talking about short squeeze etc.

Only based on this nasdaq data, it seems like the short interest has steadily doubled from 7M to 15M over the past 12 months or so.

[Luke 532]

It will be interesting to see the short interest when the report is released later this week.  Volume has not been astronomical in the past 5 or 6 trading days with the stock up roughly 25%.  Curious how much of the volume the past week has been people investing in the company vs. how many short shares have been covered.

 

Apologies to those that loathe the "short interest" discussion.

[muscleman]

Have you considered risks in lending shares from your account? Do brokers (Schwab, TDAm,...) guarantee safety in getting back those shares? What happens to your shares if the party to whom your shares were lent defaults (go broke!)?

 

I vaguely remember (during 2008 crisis, I think) Charlie Munger recommended NOT to have your shares in margin account.

 

That is an interesting question. I don't know the answer. Will the broker be responsible then?

[LC]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

[Kraven]

Have you considered risks in lending shares from your account? Do brokers (Schwab, TDAm,...) guarantee safety in getting back those shares? What happens to your shares if the party to whom your shares were lent defaults (go broke!)?

 

I vaguely remember (during 2008 crisis, I think) Charlie Munger recommended NOT to have your shares in margin account.

 

That is an interesting question. I don't know the answer. Will the broker be responsible then?

 

I have no idea how it works at the retail level, but at the institutional level, absent an agreement to the contrary and/or some collateral or other arrangement, if the securities borrower fails to return the shares the lender is SOL and would need to litigate to get some kind of restitution.  Likely if someone just doesn't return the shares it's because they are going under and one would be an unsecured creditor of the bankruptcy estate.  But as I said, no clue how it works in retail land.  I have to believe that as part of the agreement with the broker one lends at their own risk.  It would behoove someone doing this to check their underlying documentation and/or speak to their lawyer.

[tombgrt]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

4.50 range? More like $2.40! I sold the second portion as well, 100%+ in a few trading days by sheer luck adds 5% to my YTD return. More than happy to cash that in.

[Sunrider]

... just checked with IB's SLB tool - they show 0 shares available for shorting and a rate of 15.6%.

 

C.

[nkp007]

Have you considered risks in lending shares from your account? Do brokers (Schwab, TDAm,...) guarantee safety in getting back those shares? What happens to your shares if the party to whom your shares were lent defaults (go broke!)?

 

I vaguely remember (during 2008 crisis, I think) Charlie Munger recommended NOT to have your shares in margin account.

 

That is an interesting question. I don't know the answer. Will the broker be responsible then?

 

I have no idea how it works at the retail level, but at the institutional level, absent an agreement to the contrary and/or some collateral or other arrangement, if the securities borrower fails to return the shares the lender is SOL and would need to litigate to get some kind of restitution.  Likely if someone just doesn't return the shares it's because they are going under and one would be an unsecured creditor of the bankruptcy estate.  But as I said, no clue how it works in retail land.  I have to believe that as part of the agreement with the broker one lends at their own risk.  It would behoove someone doing this to check their underlying documentation and/or speak to their lawyer.

 

The way it works in our Interactive Brokers account with other shares is that when they are lent out from our account (we have the feature enabled), we get cash collateral that is updated daily to reflect the price of the lent security + a small margin.

[Guest hellsten]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

I did, but only with my little toe. I was speculating that there's a good chance SHLD trades higher at some point before 2015. In hindsight I should have bought more. One order didn't go through… It will be interesting to see at what price the options trade when I sell them.

[mevsemt]

http://mevsemt.blogspot.com/

[Luke 532]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

I've been positioned with some very deep OTM 2015 calls for a few weeks now to be prepared in the event of a Volkswagen, Tesla, etc. type short squeeze.  Roughly 1% of my account at the time of purchase.  A speculative position, obviously.

[Luke 532]

http://mevsemt.blogspot.com/

 

You should enable comments on your blog.  I was going to share some information with you a few weeks ago but I didn't want to directly e-mail it (not comfortable giving out my e-mail).

[mevsemt]

http://mevsemt.blogspot.com/

 

You should enable comments on your blog.  I was going to share some information with you a few weeks ago but I didn't want to directly e-mail it (not comfortable giving out my e-mail).

 

If you can't trust some random guy with a blog then who can you trust?  ;)

[Luke 532]

http://searsholdings.mediaroom.com/index.php?s=16310&item=137224

 

Kmart® Launches $3 Or Less National Check Cashing Service For Shop Your Way Members

 

Sep 9, 2013

 

HOFFMAN ESTATES, Ill., Sept. 9, 2013 /PRNewswire/ -- Kmart announced today its launch of check cashing service for Shop Your Way members and customers at store locations nationwide.  For a low fee of $3 or less, including some locations with no fee, members can present a valid identification card with their check and receive cash for government checks (up to $2,000), payroll checks (up to $1,500) and personal checks (up to $400).*

 

According to the 2011 Federal Deposit Insurance Corporation (FDIC), more than one in four households (28.3 percent) are either unbanked or underbanked, conducting some or all of their financial transactions outside of the mainstream banking system.  About 8.2 percent of U.S. households, or nearly 10 million, lack a bank account.** 

 

"With the addition of check cashing to our Kmart financial services portfolio, our Shop Your Way members now have the convenience of cashing checks where they shop, saving them time and money," said Jai Holtz, vice president, financial services, Sears Holdings. "Along with Kmart's other financial services offerings, including Layaway, walk-in bill pay, money transfer, money orders, ATMs and prepaid debit cards and reloads, we are providing one-stop shopping for our members' needs."

 

Free Layaway – In-store and Online

 

Kmart continues to increase the financial products available to its members, including expanding its layaway program to online and mobile. Now through Nov. 23, Kmart will waive layaway fees,*** both in-store and online, to provide its members an alternative solution to credit cards during the holiday shopping season. From the comfort of their home, customers can initiate a layaway contract online and choose to ship their purchases home or pick up their purchases from their selected Kmart.  Shipping is free for purchases over $59.  Members can also initiate contracts and pick up their merchandise in-store or have select items delivered to their doorstep.*

 

Sears and Kmart remain the only retailers to offer layaway nationally, both online and in-store; there is no minimum purchase and products from most departments are eligible, including apparel, electronics, toys, home, footwear and more. Shop Your Way members even earn points on layaway purchases -- and membership, as always, is free and easy.

[tombgrt]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

I've been positioned with some very deep OTM 2015 calls for a few weeks now to be prepared in the event of a Volkswagen, Tesla, etc. type short squeeze.  Roughly 1% of my account at the time of purchase.  A speculative position, obviously.

 

I still don't want to believe but it's compelling. In case it does: bought a small stake far OTM dec calls with 50% of the profits 1/2 hour ago. The '15 were to long dated if that is what am aiming for... Relative to my earnings and portfolio it's a very small bet.

 

Isn't there a lot of volume versus what we assume is float?

 

MevsEMT, you and others must be feeling good today. But as long as they aren't cashed in it's just paper profits so let's see how it turns out.

[Parsad]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

Yes, I bought a shitload of the $45 strike price January 15 call options in our U.S. fund...4% of the fund...I paid $6.  That's why I haven't talked about Sears on the board for the last two months.  Cheers!

[tombgrt]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

Yes, I bought a shitload of the $45 strike price January 15 call options in our U.S. fund...4% of the fund...I paid $6.  That's why I haven't talked about Sears on the board for the last two months.  Cheers!

 

Knew something was up. Your last post here was obvious imo. Gratz. ;)

[Parsad]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

Yes, I bought a shitload of the $45 strike price January 15 call options in our U.S. fund...4% of the fund...I paid $6.  That's why I haven't talked about Sears on the board for the last two months.  Cheers!

 

Knew something was up. Your last post here was obvious imo. Gratz. ;)

 

Sorry, that should have said $8.  We had an order in to buy more when SHLD dropped to $39 a couple of weeks ago, but it didn't get filled.  Cheers!

[ourkid8]

I initially bought at $45 and doubled my position at $40 :) It was 5% of my portfolio and now a bit more due to the rapid rise!  I am seriously loving the ride and finally seeing this short squeeze at work!!! YAY...

 

Tks,

S

[enoch01]

Did anyone take a dip in the '15 calls? I believe 60-strike price contracts were trading in the 4.50 range about a month ago. They are a tidy bit higher now :D

 

I made the 70s a 15% position one day after the last earnings release.  I also had 15% in the common.

 

The market doesn't care what any of us paid.