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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Cytokine1 who wrote (3812)	12/31/1997 10:43:00 PM
From: Andrew H	Respond to of 9719

>>How should we work this margin call to make it easy and automatic? Since you say there are three days to settle, how about if we close three days in a row below 35% maintenance, we do an automatic sale of a stock at the closing price on the third day, as necessary to bring us back up to 35%?<< Hey guys, remember this is Fantasy Brokerage. In the real world, I have 5 days to meet a margin call or let the market rescue me, so FB should have at least as long, IMO. Also I believe that some brokerage houses will let you go as low as 30%, so perhaps we want to give ourselves the most liberal terms we can.

To: Cytokine1 who wrote (3812)	1/1/1998 11:29:00 AM
From: Vector1	Read Replies (1) \| Respond to of 9719

HAPPY NEW YEAR EVERYONE Cyto, we're hanging in by the skin of our teeth, but it is great to be alive. With regard to margin calls I will call Fidelity tomorrow and ask them how many days they allow to bring a portfolio back into compliance. Andy says his broker gives 5 days. I thought the requirement was changed to 3 business days but will check. Whether 3 or 5 we will automatically sell if we close that many days below the maintenance level. I think we should leave ouselves discretion as to what stocks to sell. Most likely I agree we will sell stocks like MOGN which have fallen below 4 and therefor do not give us any maintenance value. V1