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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (11909)	2/13/2000 8:53:00 PM
From: Hank Stamper	Respond to of 15132

"A good number of folks have margined themselves to the hilt as the market has reached record valuations. Gee, any guesses where that money went? Seems like a long squeeze is being set up here." "Long squeeze"==crash. I had occasion to work with a broker who worked for one of the large North American firms. The firm had gleefully sold Bre-X to its clients and the clients, of course, gobbled it up--the Busang gold deposit was huge beyond imagination. The broker had a client with 300,000 worth of margin on that stock. It was virtually his whole portfolio. The broker begged him to diversify. He would not. The broker begged the office manager to do something. "Heck no," said the manager, "the guy is experienced and, besides, the stock's a winner." When the stock crashed the customer was margined out and went broke. The brokerage firm came after the broker--tried to sue him etc..... He got fired, of course, but the firm was unable to sue him. Personally, it was awful. The point here, is that this story may be repeated over the coming months. Unless, of course, the daq is the new era market and goes up and up and up.... Ciao, David Todtman