before stock moves to 75+ by december to try and wash out those on margin(which is why margin should never be used). There is no question market is highly manipulated and those who invest with margin become easy prey. 30% downward move to 39/share before quick double over next 6 months to 75+. I've seen the tactic pulled too many times to count which is why I do not use margin. 5X return over next 10 years, 50% YOY for those who can hold. More than 2.5B cash accrued by then. WS knows this but they will continue to "pretend" on some quick downward move and then just as quickly a doubling of the stock in 6 months(just as they did the past 12 months. Just remain solvent and patient. 1688
It is a principle that should follow one throughout their life; if I don't have the money to pay for it, I am not buying it. Margin is there for no other reason than for the brokerage to make money on interest by lending you money. It is just a matter of days till this business produces the amount of cah equal to value(asI have REASONABLY pointed out haha) but any type of moevements can hapen between now and Judgement day(warren buffet term from a speech he gave). So the question is "can you remain solvent?"
It really should not be a question but with margin, it tempts the gambler in all of us and it leads to oor decisions as the investment is based on borrowed money. But one just needs to look at the volatility of stocks, goes down 50%, and then up 100% all in 1 year! to realize it is foolish and going to just lead you to lose money as oposed to staying put.
What did Warren Buffet do today with his investments? He sat on his $$$ just like I did ;) and counted down the days(or maybe that is just me).