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Technology Stocks : How high will Microsoft fly?
MSFT 478.47-1.1%3:59 PM EST

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To: johnd who wrote (1450)5/30/1997 6:46:00 PM
From: johnd   of 74651
 
Where is everyone?

How do you guys like this for a strategy.

Ivvest 100k in MSFT at 60% margin. When MSFT doubles
you will have 200K less 40k in margin debt for 160K.

That would be 60K returning 160K or nearly 170% when
the stock has increased only 100%.

The risk is sharp drop in MSFT. doesn't happen as much.
Also, you pay some interest on the margin debt.
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