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Technology Stocks : Lucent Technologies (LU)
LU 2.500-0.8%Nov 28 9:30 AM EST

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To: freeus who wrote (1999)4/3/1998 12:02:00 PM
From: ShamukE  Read Replies (2) of 21876
 
Think out this scenario.

You margin.

Stock splits.

Drops a few points.

Twice the loss.

Margin call!!!

Doesn't it get a bit risky when you're playing with variables? This morning Lu was halted at about 10:15. There was an order imbalance. From what I can tell a block of 1.28Mil. shares crossed the tape. It didn't effect the price very much. However, what if it were a 5.0 Mil. trade at merket and the price was driven down significantly.
In my estimation, unless you have the resources, I think that you can get badly burned by the margin.

If you can offer some insight I'd appreciate it.
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