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Message: Re: margin accounts
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May 20, 2011 12:44PM

May 20, 2011 01:19PM
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May 20, 2011 05:28PM

Don't sweat this 'shorter effect'. When the drills start talking they will all go away.

Couple of observations. The effect of putting your shares up for sale, may, or may not trip up the shorters. It is a broker discretionary thing. If he knows, or is fairly confident that your ask price will not be reached, he's going to lend your shares anyway. One of my accounts is 'Margin', and although I never use the margin, I know some of my equities are loaned out. It's not unusual for a broker to pay an interest to borrow your shares, but this is more likely with U.S equities.

One of my favourite 'playgrounds' is the China small cap market, a shorters paradise. Even Cramer and his CNBC buddies are in this arena and the law-suits are flying thick and fast. If you can figure out which way they're betting, you'll survive.

If you want some excitement, join in. AND QUIT WHINING ABOUT NEWS RELEASES.

The drills (truth machine) will tell the story, hopefully with a happy ending.

The shorters here are a non-event.

All in my very humble opinion.

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May 20, 2011 06:32PM
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