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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Kurt Goebel who wrote (3566)	8/25/1998 3:41:00 PM
From: David	Read Replies (1) \| Respond to of 10081

Kurt I thought I would pipe in on this one as I alluded to the margin squeeze earlier. The key is that once a stock is below $5 the margin ratio requirements change from 30% to 50% of portfolio --that ratio everyone hopes never to see show up on their account. So some people holding this stock on margin were able to sell some shares to preserve their positions while it has dropped from the teens, but now when* it goes *(and I hope that is "if" and not surely a "when") below $5 the game changes and many margin accounts may just be wiped out.