Got a letter from M&I the other week saying that as of September 30th. my Journal stock loan will expire. The loan will renew on Oct 1st. at prime plus 1%. They also mentioned that the loan to stock value cannot exceed 65%.
I was told a number of months ago that starting October the loan rate would be determined by the individual's credit rating and the ratio of loan to stock value. You can go to any bank or brokerage for a loan on "A" shares. I am not sure about "B" shares outside of the old Journal stock loan banks. The non old Journal stock loan banks and brokers will probably insist on a maximum loan of 50% which is the industry standard. I was told by my bank that the final decision had not been made but that there was a good chance my loan would remain at 0.6% below prime. My loan is substantial but below 50%. Now that the Journal is out of these loans, this is going to be handled as any other loan. We are all on our own and need to do our homework. Some brokerages quote the loan rates on their web sites. With the loan deal we had expiring, I anticipated a sell off forcing a drop in price. I would not be surprised for this depressed pricing to last through year end. The only hope is that the Journal buy back of shares will help absorb some of the excess selling, keeping the price from dropping too low. Those with patence will probably benefit in the long run.
Glad theres still someone around.I mentioned this months ago.The price would take a beating because of selling before Sept.But there is something else going on.There is a pattern of buying when the stock hits around 16.40.I think the company is buying back those 5 million shares.Maybe someone is protecting their Margin loans.At these prices.Morgan Stanley is offering a 1% Under Prime Margin loan.But you better own less then 35% of your loan because of a Margin Call.They will give a loan of up to 50% value.But be safe.Still buying GOOG, as of last week when it hit 286.00.Now have 100 shares been buying 10 shares at a time.Average cost is 199.Have my fingers crossed for Big numbers from Yahoo on the 19th.If not Im out fast.GOOG reports on the 21st.There was a Analist on CNBC yesterday,stating the only help for Old Media Companies is Merger.