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Politics : Formerly About Applied Materials
AMAT 252.25+0.9%Nov 28 9:30 AM EST
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To: Robert Einstein who wrote (14269)1/8/1998 10:49:00 AM
From: Paul V.  Read Replies (1) of 70976
 
Robert, >
Hello Everybody,

I am student . I got some money from my parents. I was thinking of buying 2000 shares AMAT on margin and keep it for 2 to 3 yrs. Any guess where AMAT will be in 1999 2000.

Hope many people respond. Serious answers greatly appreciated. Please don't make fun of my english. It getting a lot better.<

Unless you have a steady good income and available sufficient credit at an local bank or another source to tap into if the brokerage company raises their requirements from 30% to 40% or 50% for a margin call (which they can do at any time) and you get a excellent low buy on AMAT I personally would not buy on margin. The Rule, "Do not get yourself in a position to have a margin call" is an excellent rule. But, the brokerage can raise the requirements on you and you can be forced to eat your lunch. Ask Brian? Additionally, you will be paying approximately 8.00% per month on the portion of the money which you borrow. Not bad if you are making 60+% on the stock but a drag if you are paying interest on the borrowed money plus having a loss on principal which you have invested plus the borrowed principal.

I perceive that AMAT should reach the $100 or its equivalent some time during or prior to the year 2000.

Ultimately, you have choices to make but those choices carry consequences, pro and con, depending on the variables.

Naturally, this is my personal opined interpretation of the DW Charts, caveat emptor.

Regards,

Paul V.

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