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Technology Stocks : Novell (NOVL) dirt cheap, good buy?
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To: EPS who wrote (21431)3/27/1998 8:29:00 AM
From: dwight vickers  Read Replies (1) of 42771
 
Victor,

Ask your friend if he knows what a margin call is, and with $38.67 in real cash, how he would meet it.

A 2nd question would be how would a 4% (5% is easy to find by the way) return on his money look compared to a 25% decline in stocks.

Make that a 50% decline if he's fully margined on those investments.

Can't happen? It's happened at least 15 times this century. As recently as 1990-91.

Not saying it will happen today, but thinking it can't happen could lead to financial ruin.

Dwight
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