Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

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Message: Re: RBC
RBC
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Jan 30, 2008 05:33AM
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Jan 30, 2008 05:51AM

Jan 30, 2008 06:01AM
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Jan 30, 2008 07:20AM

Re: RBC

in response to by
posted on Jan 30, 2008 09:01PM

Ankheroo 

A broker can lend clients shares when

1.  they are held in a margin a/c

2.  a cash a/c customer gives written permission

Fully paid shares are held in segregation & can't be used by the broker.

An efficiently run brokerage lends out as many margin clients shares as possible as he receives cash to put to work & pay down other loans he may have against bonds or whatever. 

In my opinion you are "tilting at windmills".  Remember for every short sale there is an offsetting long purchase.  At some time in the future the short has to buy back.  There is a huge risk for a short  when an offer may be made at any time!!  It's not that frequently you get a "short squeeze" & you certainly won't get it with ARU.  I would like to see lots of short sales because it will provide underlying share price strength & could provoke a buying stampede when there is a rumor of a takeover.

Regards

Joltin 

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Jan 31, 2008 08:46AM

Jan 31, 2008 09:16AM
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