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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: Henry Niman who wrote (14157)	2/3/1998 5:51:00 PM
From: celeryroot.com	Read Replies (1) \| Respond to of 32384

I might be in the market again if it continues

To: Henry Niman who wrote (14157)	2/3/1998 10:39:00 PM
From: CYBERKEN	Respond to of 32384

And there was 5K 12 seconds later @5 1/8. Schwab carried a close of $5, which is right at the level below which it doesn't count as equity. I talked to an account rep tonight who indicated that it would not be either automatic or immediate that it be kicked out of your equity for margin purposes. They will decide after it closes below 5, and have some small discretion in the matter. (I doubt if they'd let this go longer than a session or 2, though.) If it stops counting in equity on an on-line account, the margin call probability is the next day after the overnight balances update. There is then a "grace period"-probably the 3 days mentioned in the earlier post-to rectify the situation. Also, a margin call is not generated by a drop below 50%, but somewhere approaching 35%. This information corresponds to a lengthly discussion of margin on the VD thread over the last few months. VD model is currently being carried at a 40% equity level (of course, it ain't a REAL broker) based on margin-related information that the thread participants collected from their sundry and many brokers. All that said, it could be a real shitty deal ahead for those of us who hold LGNDW in a margin account. Nice time for a little pop on heavy volume tomorrow, Henry.