Posted by matakuda > 2014-08-08 23:07 | Report Abuse

Walao. Uncle kena margin call soon?

Posted by matakuda > 2014-08-09 10:34 | Report Abuse

A case study of uncle's margin account for Jtiasa with the following assumptions.

Average Cost: RM2.60
Number of Shares uncle currently holding: 30,000,000 shares
LSR: 55 %
Uncle's own fund: RM35,100,000.00
Margin finance: RM42,900,000.00

For uncle to receive margin calls, the LSR must exceed 70%.
If LSR >70%, Jtiasa price would be RM2.04 or lower

For the broker to force sell uncle's stake in Jtiasa, the LSR must exceed 80%
If LSR>80%, Jtiasa price would be RM1.79 or lower.

Guys, prepare your bullets when Jtiasa dips below RM2.04. Only use the bullets when Jtiasa nosedive to RM1.79. Good luck!

Posted by homosapien > 2014-08-10 18:33 | Report Abuse

rich investor have multiple stream of income....unlikely margin call, even it does happen, alot of fresh fund will be readily available