From the desk of Roel Hoekstra March 4, 2009
Tale of the Tape
As I watch the charts and stock market tickers I am struck by the change in emotion from among
investors and the analysts who chat away all day long on CNBC. Just a few weeks ago there was
great optimism that President Obama would change the direction of the Country; indeed the world.
That partisanship would be put on hold for at least a little while and a major stimulus package would
get the economy moving in the right direction.
Well, that has not gone so well now has it? We seem to be struck in a vacuum of confidence. And like
most vacuums, it sucks.
I am no different. I sit at my desk pulling on what little hair I have left and wondering both when the
general trend will change and how to best position our company to grow and flourish. In general I am
disappointed by what I see all around me.
Then I realized with great relief that all things considered, we are doing really well. When we launched
Global Stock Lending Direct LLC last summer, I was convinced that our basic model would be both
conservative (because we are lending at attractive loan to value rates against liquid assets) and
generate attractive returns (because of the interest we collect monthly and our hedging strategy).
What happened was what we had hoped for. In this time of rapidly decreasing stock prices we are still
making money on a cash flow basis and while our balance sheet has been impacted by the overall
market decline, it remains strong and we are extremely well positioned to take advantage of a market
rebound.
So while right now I would prefer to be sitting on a yacht somewhere in the Caribbean sipping drinks
that come with umbrellas, it is important to remind myself that during times of historic uncertainty our
company is thriving, not just surviving.
Thriving not just surviving
Deal flow is way up. Our Freedom Stock Loan program is the most flexible and most competitive non-
recourse stock loan program available anywhere. Our clients know this and so do our many
prospective clients.
Right now we are inundated with potential deals. Many of our customers do not want to sell their
stocks while prices are so low yet still want to either hedge against additional downside moves by
raising cash or have other attractive investments to pursue. A non-recourse loan makes great sense
in this market as they can raise the cash, do not have to worry about a margin call and have
complete flexibility to pay off the loan when ever they want and have no restrictions on future capital
appreciation.
This allows us to be very picky in choosing the deals we write and keeps loan to value ratios low
which decreases the risk overall to the borrower and to our company and our investors.
The Freedom Stock Loan:
Access the equity in your stock holding without selling
• Non – Recourse loan without margin calls if the stock price declines
• Loan to Value (LTV) rates of 50% to 80%
• Fixed interest rates (currently 7%)
• No closing costs
• 2 year term with the ability to pre-pay at any time
• Quarterly portfolio review so more cash can be withdrawn if the underlying stock increases in value
• No cap or limit of future stock price appreciation
Opportunity to participate in our company’s growth and profitability
Our approach is to use very little leverage to minimize the impact of stock price fluctuation on our
balance sheet. Until now we have been funding our lending operations from our equity capital. As the
business has expanded and given our overflowing sales pipeline, we are looking to bring in additional
capital through the sale of limited partnership shares. Our limited partners will share in the company’s
cash flow and will retain rights to cash out their limited partnership shares in the future.
For more information on participating as a limited partner please call or write to me directly so I can
forward along the proper documents.
Sincerely,
Roel Hoekstra
President and CEO
Global Stock Lending Direct, LLC.
215.858.8659
www.globalstocklending.com
Notice of disclosure and disclaimer: Although the information contained in this e-mail communication has been obtained from sources
we believe to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. All data,
estimates and opinions included in this e-mail constitute judgment as of the date of the respective material, and are subject to change
without notice. Accompanying material is for informational purposes only and is not intended as an offer of securities or solicitation with
respect to the purchase or sale of any security. This material is not intended for public consumption, distribution or reproduction.
Tale of the Tape
As I watch the charts and stock market tickers I am struck by the change in emotion from among
investors and the analysts who chat away all day long on CNBC. Just a few weeks ago there was
great optimism that President Obama would change the direction of the Country; indeed the world.
That partisanship would be put on hold for at least a little while and a major stimulus package would
get the economy moving in the right direction.
Well, that has not gone so well now has it? We seem to be struck in a vacuum of confidence. And like
most vacuums, it sucks.
I am no different. I sit at my desk pulling on what little hair I have left and wondering both when the
general trend will change and how to best position our company to grow and flourish. In general I am
disappointed by what I see all around me.
Then I realized with great relief that all things considered, we are doing really well. When we launched
Global Stock Lending Direct LLC last summer, I was convinced that our basic model would be both
conservative (because we are lending at attractive loan to value rates against liquid assets) and
generate attractive returns (because of the interest we collect monthly and our hedging strategy).
What happened was what we had hoped for. In this time of rapidly decreasing stock prices we are still
making money on a cash flow basis and while our balance sheet has been impacted by the overall
market decline, it remains strong and we are extremely well positioned to take advantage of a market
rebound.
So while right now I would prefer to be sitting on a yacht somewhere in the Caribbean sipping drinks
that come with umbrellas, it is important to remind myself that during times of historic uncertainty our
company is thriving, not just surviving.
Thriving not just surviving
Deal flow is way up. Our Freedom Stock Loan program is the most flexible and most competitive non-
recourse stock loan program available anywhere. Our clients know this and so do our many
prospective clients.
Right now we are inundated with potential deals. Many of our customers do not want to sell their
stocks while prices are so low yet still want to either hedge against additional downside moves by
raising cash or have other attractive investments to pursue. A non-recourse loan makes great sense
in this market as they can raise the cash, do not have to worry about a margin call and have
complete flexibility to pay off the loan when ever they want and have no restrictions on future capital
appreciation.
This allows us to be very picky in choosing the deals we write and keeps loan to value ratios low
which decreases the risk overall to the borrower and to our company and our investors.
The Freedom Stock Loan:
Access the equity in your stock holding without selling
• Non – Recourse loan without margin calls if the stock price declines
• Loan to Value (LTV) rates of 50% to 80%
• Fixed interest rates (currently 7%)
• No closing costs
• 2 year term with the ability to pre-pay at any time
• Quarterly portfolio review so more cash can be withdrawn if the underlying stock increases in value
• No cap or limit of future stock price appreciation
Opportunity to participate in our company’s growth and profitability
Our approach is to use very little leverage to minimize the impact of stock price fluctuation on our
balance sheet. Until now we have been funding our lending operations from our equity capital. As the
business has expanded and given our overflowing sales pipeline, we are looking to bring in additional
capital through the sale of limited partnership shares. Our limited partners will share in the company’s
cash flow and will retain rights to cash out their limited partnership shares in the future.
For more information on participating as a limited partner please call or write to me directly so I can
forward along the proper documents.
Sincerely,
Roel Hoekstra
President and CEO
Global Stock Lending Direct, LLC.
215.858.8659
www.globalstocklending.com
Notice of disclosure and disclaimer: Although the information contained in this e-mail communication has been obtained from sources
we believe to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. All data,
estimates and opinions included in this e-mail constitute judgment as of the date of the respective material, and are subject to change
without notice. Accompanying material is for informational purposes only and is not intended as an offer of securities or solicitation with
respect to the purchase or sale of any security. This material is not intended for public consumption, distribution or reproduction.