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Microcap & Penny Stocks : THE OZONE COMPANY! (OZON)
OZON 11.600.0%Dec 4 4:00 PM EST

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To: Starduster who wrote (1523)11/25/1997 2:00:00 PM
From: Jeffrey L. Henken  Read Replies (1) of 4356
 
Sandy there are inherit risks to buying on margin. I'm not even going to begin to suggest that OZON is not a good buy at these levels. On margin or not. But it's a damned if you do and damned if you don't situation. I have to say something. So here goes. If the stock goes up significantly for those who buy on margin then they will wish they had bought more. If on the other hand a stock goes down and the margin is called any investor would wish that they had not bought at all.

Any investor should be well aware of the risks associated with buying on margin before taking the plunge in any stock. So be sure you buy any stock for the right reason when buying on margin. Not the wrong one which is simply that you can.

I took this quote from the Motley Fool. Not that I am any great fan of theirs but it seems like reasonable advice:

If your margined securities fall below a certain level, you'll receive a "margin call," requiring an infusion of additional cash. And although you're currently allowed to borrow up to 50 percent of what your actual holdings are worth, many Fools think that 20 percent is the most you should borrow, if you borrow at all.

So as I have said before do your due diligence before you buy! That includes buying on margin. Regards, Jeff
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