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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: SBHX who wrote (25350)	8/23/2001 6:26:42 PM
From: Jdaasoc	Respond to of 30051

SbH: I would say the real sad selling of RMBS would be 2-3 trading days from today when margin calls due in RMBS heavy accounts would have to be satified. I don't think market is going to give these drowning souls a break by allowing stock to bob above $5 before then. Only saving grace may be that these shares listed up until today in margin account swould revert automatically to cash account status. These shares would be removed from shortable pool. I am not perfectly clear on this depending on specific brokerage companies out there but it makes perfect sense that if they are below $5 they aren't marginable and would full cash value for margin requirement calculation purposes. Shorts not willing to cover at below $5 would be excessively greedy IMO. john