Post by
tamaracktop on Mar 03, 2021 9:04am
A Sobering Thought and a Lesson
Prabhu's departure was completely unexpected. Out-of-the-blue.
That sometimes happens in the market. Things happen that you can't possibly anticipate.
Things like covid 19
The Exro Event yesterday was a lesson. A free lesson to most, but not all. A lesson in the importance of diversification, particularly those on margin. No matter how smart you think you are.
It can mean the difference between survival and disaster.
If any people had been concentrated in Exro, and had been fully margined, they would have been completely wiped out yesterday. All of their equity destroyed. Their accounts, no matter how big or how small, would have gone to zero in one day.
That was just an isolated case. It happened to just one stock.
I was a stockbroker when it happened to the whole market. Black Monday. October 19th, 1987. The Dow dropped 30% at the open, and closed down 22.6%. The biggest one-day percentage drop in history.
It came without any warning whatsoever.
Comment by
plants on Mar 03, 2021 9:28am
> I was a stockbroker when it happened to the whole market. Black Monday. October 19th, 1987. The Dow dropped 30% at the open, and closed down 22.6%. The biggest one-day percentage drop in history. It came without any warning whatsoever. How did the firm respond to this?
Comment by
tamaracktop on Mar 03, 2021 9:47am
The Royal Bank convened upper management in an emergency meeting, and after due consideration and reflection on the seriousness of the situation by a hastily convened board, they sent out a bunch of margin calls
Comment by
filoux004 on Mar 03, 2021 10:18am
TT what company are you eluding to??? Xbc???
Comment by
sumpineh on Mar 03, 2021 9:55am
That is why I don.t borrow to invest or invest what you can.t afford to lose
Comment by
ddogold on Mar 03, 2021 10:27am
Sumpineh, very true . Avoid borrowing and invest in companies only after DD . Management is key . That’s why after the bogus Short report on Exro . I had no qualms about doubling my investment as the sheep panicked and sold
Comment by
sumpineh on Mar 03, 2021 10:51am
Yes,I also bought a bit more yesterday.(not double though)
Comment by
BenROver on Mar 03, 2021 10:04am
I enjoy reading your posts TT and have a question..... What do YOU think Xebec's stock price will be in 12 months?