Paysafe Share Discussion Threads

[maddox] 09/1/2017 12:36

Hi Steptoes, Norwegian self-perception - ask a Norwegian you'll soon get the picture! Cheers Maddox

[ihatemms] 09/1/2017 12:21

Just 2 trading days left until the TU. Are we likely to see more short closures over the next 2 days ?

[steptoes yard] 09/1/2017 11:30

Quality points maddox although I'm not clear at what point it was agreed that Norway are the moral superpower?

[polythene] 09/1/2017 11:29

I am all for screwing shorters to the wall. After all, they are all about screwing the longs to the wall except they trade on negatives.

[polythene] 09/1/2017 11:28

That's the way I read it Boadicia, but it is bizarre that someone thinks there is something 'orderly' about this. Is it a requirement to state 'Right to recall at any time'. Why TF would they lend them out in the first place? But I see it is as positive overall. Their overall interest has increased but because of the number on loan their voting rights have decreased. Presumably when it is to their advantage they can recall the shares (hopefully after a blockbuster TU where the share price is rising)!

[maddox] 09/1/2017 11:17

Norges Bank is in fact the Central Bank of Norway – and they are managing what I believe is the largest sovereign wealth fund on the planet. All that North Sea Oil and only 5.2m Norwegians.

So you wouldn’t think that Norges Bank (the state bank of that moral superpower Norway) would need to nickle and dime it with those nasty hedge funds?!? The fees from stock lending must be insignificant against the decline in the capital value of their holding. OK, so they are long-term investors and so the shorting driven share price dip may not matter on a longer term view.

However, I just wonder whether Norges Bank has a different cunning plan – to increase their holding taking advantage of the now lower price and increased liquidity? As the amount of short positions declared above 0.5% totals 5.04% Norges Bank represents c.9% of that on loan and this stock can be recalled immediately. So they appear to be in an influential market position.

On the otherhand if Norges Bank want to facilitate PAYS buying back their shares at a discount - all well and good.

Regards, Maddox

[nurdin] 09/1/2017 10:33

Yes a clever ploy,beating the shorters at their own game ! It is also apparent that Norge have yet to exercise their option...the share price should get a nice boost when they do...and when the shorters close.A double whammy!

[boadicea] 09/1/2017 10:20

ralphmalph - The exact legal situation is not necessarily important. My point is just that during the shorting exercise, the original owner (lender) has the opportunity to increase his holding at a knock-down price which actually helps the price recover. He also gets his original stock back and the closing of the short will tend to raise the price further - but at the shorter's expense.

It is clear from the RNS that the declared holding (A) does not include voting rights to the stock on loan (B) and which is aggregated in the total interest shown as (A+B+C).

Moreover, the total interest has increased by 1.45M since mid December, indicating that Norges have bought further stock in the intervening period but have lent more than they bought, causing their voting rights (A) to fall.

[nurdin] 09/1/2017 10:18

It could be that at the time they loan the stock, they also take out an option to buy the shares back in the open market at a specific price.That way they can control the share price decline ... and possibly profit from the loan by buying back at a reduced price....a win win strategy.But I am guessing,probably wrongly!

[nurdin] 09/1/2017 10:05

'When owners lend out securities, they pass title to those securities to the
borrower, and therefore
temporarily lose the right to vote. Securities loans are entered into under master legal agreements that
outline the rights and responsibilities of the lender and the borrower'

[ralphmalph] 09/1/2017 09:58

@boadicea - I do not believe it works that way. The shorter borrows stock from the owner to be able to short. They pay a fee for borrowing, they do not buy the stock to own it. When they want to cancel the agreement, they just give "control" of the shares back to the owner and stop paying the fee.

[boadicea] 09/1/2017 09:52

nurdin - That is what I originally thought. However, their total interest in the stock (A+B+C) is larger than their declared holding (A) which excludes lent and option positions etc.

[boadicea] 09/1/2017 09:49

It looks like Norges bought some of the stock they had lent to the shorters.

If a lender buys the stock he has lent to the shorter when shorted it to a knock-down price and then sells it back at a recovered price when the shorter closes in order to return it when recalled, perhaps the lender is a brighter than the shorter.

[nurdin] 09/1/2017 09:47

But surely they still own the loaned shares? Should not affect their net holding Id have thought.

[malcolmmm] 09/1/2017 09:46

Buy backs showing on Short Tracker. I think that there will be further buy backs before results.
Fund manager

% short

Change

Date changed/created


AEK (UK) Limited 2.61% ↓ -0.27% 2016-12-21
Oxford Asset Management 0.60% ↑ 0.10% 2016-12-16
Public Equity Partners Management, L.P 1.83% ↓ -0.07% 2017-01-05

Total 5.04%

[boadicea] 09/1/2017 09:34

Comparing their last two disclosures, I make it they have actually bought 1.45M shares and have loaned out a further 2.16M, i.e. they have been buying to lend.

The figures between the disclosures don't exactly match to that but are very close, i.e. a net reduction of about 0.7M in the number they now hold (excluding those lent which appear in the A+B+C total.)

[verger] 09/1/2017 09:14

Am I right in saying that Norges Bank have sold around 2m shares and have around 2m shares loaned out?

[longwell] 08/1/2017 20:36

the share buy backs, continued diversification, continued good results and the inevitable sector consolidation will all make charts useless. be patient and reap the rewards.

[zcaprd7] 08/1/2017 16:33

I don't think the automated technical analysis is much help here given the recent shenanigans...