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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: jan m. who wrote (11808)	2/20/1998 2:23:00 PM
From: Bonzo	Read Replies (1) \| Respond to of 31646

Posted this on the Fools board this am. The first time I called and spoke to someone I received this explanation: >>DLJ has now told me this AM that TAVA is no longer Marginable. Darn I tried to place a margin order and got the message "stock is not marginable". Called them up and they tell me even though TPRO was approved a couple of weeks ago for margin trading they do review these stocks and perhaps due to volatility will "pull the marginability" on the stock. I don't buy it. I tried arguing that it must be your computers not keeping track of the symbol change and someone needs to update the change. I'm told no that the system keeps track by CUSIP (company/stock code) and that does not change. Anyone else experience this with their respective on-line trading accounts?<< The second time I called and asked to talk to a supervisor I received this explanation: >>DLJ Direct tells me that they will not margin TAVA until the SEC approves TAVA as marginable just as they already had done with TPRO on Feb 9th. And how long will that take? What is this nonesense? A formality that may cost folks wanting to buy on margin some $$$. A symbol change should not have removed this stock from marginability status.<<

To: jan m. who wrote (11808)	2/20/1998 2:23:00 PM
From: Andrew H	Respond to of 31646

>>I thought that once you were offered margin status that they couldn't take it away, unless the stock dropped below 5 dollars.<< What the margin department told you is correct. Since individual houses offer margin, they can in theory take it away at any time, if they feel the stock is a poor risk. In practice this is done very rarely (unless there is a drop under the marginable price) since it could put their clients who are holders in a very difficult position. So while they have the right to take away marginablility, it is highly unlikely they will do so. In TAVA's case, it is extremely unlikely since the stock is almost certain not to drop below 5 and the profitability picture is improving daily! Of course some bokerage companies are either to slow or too bureaucratic to deal rapidly with a symbol change. So apparently some that were margining TPRO are currently not margining TAVA. This glitch will hopefully be taken care of in a few days. They will realize it is the exact same company approved by the FRB, just a new symbol.