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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (44308)	1/18/1999 10:09:00 PM
From: ayahuasca	Respond to of 119973

As far as I know most of the internet stocks have not been marginable for weeks. At DLJ, I know stocks such as NAVR, DCLK, DRIV, NETG, DBCC, MALL, EGGS, COOL, ONSL, CDNW and others have been only cash for at least 6 weeks. I havent traded YHOO, AOL, AMZN or some of the bigger inets but I would bet that they have been restricted for a while also. So I ask what is the big deal? First of all, when they were all restricted to begin with we didnt have a major inet correction. I remember the initial report that there would be a margin tightening on the inets and alot of people were predicting the end of the world for these stocks. Well, there was a very broad margin restriction and I dont seem to remember any significant effect. The stocks are still trading through the roof. (BTW, the rationale and valuation of these stocks is another matter entirely). Secondly, since most already are restricted, the effect would be rather narrow (and given the first point, the 'effect' is basically nothing anyway). Last, don't brokerage houses set their own margin requirement rules? It is true that most, if not all, did already raise requirements on most net stocks, so perhaps it is an industry wide thing. Whatever the case it seems that there is really no story here. Am I missing something?