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johnmcconks

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Hi John

 

I'd say you'll get a margin call before November.

I don't think retail is a good option at the moment.

 

Buy IVC mate, not meaning to ramp the stock....just think it has a better source of income over the next few years, and is more likely to attract conservative investors through an uncertain period.

 

Tex.

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CML would be the last stock I would consider margining, sounds like better to short it....

 

 

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Why would one do that? CTX by its very nature is linked directly to a highly volatile sector.

Which brings us to another question. If you perform "margining" against a stock that suddenly becomes a takeover target, either hostile or freindly, where exactly does one stand wrt the loan?

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Not sure about CML John.Been a horror for a while but has done well of late.How much higher for how long ????Divvie just OK.

Try HSBC , they have a cheaper 12 months in advance option for margin loans. 6.99 % if before 23/6 (I think).

I would never put the lot into any one stock.

I would never go out on limb and go anywhere near 100% funding.If you are new to margin lending and dont wish to stay awake at night, go for consistancy and or yield and preferably something that is in an index that should do well over the next 6 months to a year.At least with a decent yield your costs will largely be covered if the stocks stands still and will be protected / supported if it goes pear shaped.Prob stick to stocks at 60% or better LVR.Just MHO.

Which stocks you ask?.... well I wish I could help but that is not my place to predict or advise.Humble punter here with some scars from being burnt once or twice.

Good luck either way.

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Interesting point.Presumably , the insto would carry the original stock and its margin until T/O was complete and would then transfer the equity/loan / margin to the acquisitor, ie if NAB had taken SGB you would effectively end up with NAB on margin with its appropriate %.

I've not been in that situation before so cannot offer certain advice. Just my guess for what its worth.

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The only stocks I margin are SGW, BIL, VBA, QAN, since I know the patterns of these stocks. But do some research, these are certainly not buy recommendations...

 

 

CTX - bit of risk at these levels, could go higher, but one day it will test $6 again I think.

 

CML is getting close to all time highs 2001-02, it may grow with the shell/CML deal, but maybe there is something cheaper out there to margin? CML has failed to break $9 3 times in the last 6 years, it may do so this time but is risk worth reward?

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