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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?


To: ekn who wrote (13723)8/2/2000 11:14:43 AM
From: PartyTime  Read Replies (1) | Respond to of 18366
 
No question about it, margin will get ya. But you know what? There's always the many out there who'll use newly-gained margin accounts. I learned this the hard way myself. And the fact I did it once, leads me to believe others will as well.

My point was, in the fury of events--i.e., Nasdaq, news/events, word of institutions buying, etc.--there'll invariably be some, perhaps even many, who'll use margin accounts. I was merely factoring this into the equation of what might happen in the midst of a strong EDIG run.

But, yes, let me echo your comment: Buying on margin is extremely risky, especially when using margin as a means to buy into an upstart company. Still I submit whether you, myself or anyone else presents warnings on doing so, such warnings will be ignored and margin buying will happen anyway. It'll become a factor.



To: ekn who wrote (13723)8/2/2000 11:35:19 AM
From: Jon Tara  Read Replies (2) | Respond to of 18366
 
PT, EKN, marginability may NOT be a good thing for EDIG!

Given the cult-following that EDIG has, I would not be surprised to find a larger-than-normal percentage of EDIG shareholders going on full margin with EDIG as their only holding.

You can caution people all you want, but it will happen anyway.

This will make EDIG susceptable to even greater volatility than it has now.

IF it ever gets a NASDAQ listing.

Old curse:

"May you get what you wish for."