thats not what happens. a stock under $5 doesnt count for the equity needed to maintain margin
lets say you have an account with 50k of stock in it,divided equally among 10 stocks plus 5k in cash
you decide to buy 1000 share of SUNE at $10 a share.
you pay the 5k in cash and borrow 5k
Now SUNE falls to $4 a share. everything else stays the same
you own 45k in other stock plus 4k of SUNE
for margin purposes the 4K in SUNE doesnt count towards your margin amount but you still have 45k in other stock. your above the maintenance amount so no margin call
pe doesnt matter for an MLP.the earnings for an MLP are always grossly distorted by depreciation. the key number if DCF,the cash available for distribution. IE does the company generate enough cash to pay its distribution. its similar to FFO for a REIT
i dont even thing its shorts piling on. teh hedge funds just are dumping madly and in this market no one wants to take a stand and buy. better to sell and keep cash earning zero.
support doesnt matter. nothing matters. all the hedge funds want to do is sell the #$%$ out of this. until they stop nothing else matters. they can drive this down below 10,since right now all the hedge funds want out and no one is stepping up to buy.
eventually SUNE will turn up but that may take a while until the market stops freaking out
once it bottoms i expect a 10-20% snapback rally in a hurry. and i think the bottom is close.
its been diving on tremendous volume as the hedge funds all scramble for the exits.
i expect it to be in the mid teens by the end of the month
to me that screams oversold. of course that doesnt mean squat in this market
ive bought solar panels. as have many people in my neighborhood. i like getting a large percentage of my power from the sun.....