From the desk of Roel Hoekstra May, 2006
I hope this letter reaches you in good health and as excited about the upcoming summer as I am. Here
in Philadelphia, after another long cold winter, the sun and longer days seem to make everything
better.
In my May 2006 newsletter I discuss two items;
• The latest news in stock lending
• The 100th anniversary of the Newport to Bermuda Race
Stock Lending
I am excited to let everyone know that we now have expanded our product portfolio to include a
variable rate loan program. This program combines the best features of a margin loan with the
traditional safeguards of our non-callable, non-recourse loans.
What we can now do is create a loan where the interest rate is variable (currently at prime+1) and the
loan balance can be paid off at any time after an initial 90 day holding period. This means that you
can get a high loan to value (LTV) of up to 90%, never have to worry about a margin call and keep all
the future capital appreciation from the stock.
In addition to our new variable rate loan we are still being very successful with our fixed rate and fixed
term loans. These carry a 90% loan to value and fix the downside risk to the stock (you have the cash
in hand today) while providing unlimited upside potential for the stock appreciation.
For thinly traded stocks that do not qualify for the 90% LTV underwriting we can write the loans at
lower LTV ratios from 40% to 85%
Do you have stock holdings you would like to borrow against? Please give me a call to discuss your
situation and let’s see what we can do to make your dreams come true.
Newport to Bermuda Race
This June is the 100th anniversary of the premiere east coast ocean race. Why does this matter, well
it does because I am racing my boat to Bermuda this year! We have a great crew of 9 accomplished
sailors and are excited about the race. The race is approximately 650 miles long and should take us
about 4 days to finish.
Success in ocean racing in general and sailboat racing in particular takes many of the same skills as
does success in business, including; team work, preparation, execution and stamina (and a little guts
too).
Our boat is a 1985 Swan 43 that started life primarily as a cruising boat but over the last 6 years we
have worked hard to turn her into a very competitive ocean racing boat. In the 2005 Annapolis to
Newport race where we finished 3rd in our class.
If any of you are in the Newport area the week of June 12th let me know. I would be happy to show you
around the boat or have you join us for a practice sail.
Each boat will carry a transponder and by going to the race site, you can follow the progress of each
boat in real time. I hope you will enjoy checking in on our progress during the week. I’ll be sending
everyone a link as soon as it is up. Again the race starts June 16th.
Follow-up and contact information
I would be delighted to talk with you about your stock loan needs or sailboat racing any time. Give me
a call at 215.858.8659 or send an email to Roel@globalstocklending.com
Best Regards,
Roel Hoekstra
www.globalstocklending.com
Philadelphia, PA
215.858.8659 phone
215.827.5414 fax