good business sense?, page-8

Hi guys,

The only way I could take up AIO's offer was with a margin loan -unless I wanted to sell my other stocks.

Essentially, as I see it, one of the advantages of using a margin load is that like an overdraft, you only pay interest on what you are using.

As long as you keep plenty up your sleeve (ie: only use 60% of the full loan), it should be possible to keep a close eye on what is going on to avoid a margin call.

The question is: If there is enought to cover market fluctuations, are stocks like Asciano / RIO / MAH / NXS / VPG / BLY likely to increase more than the 10% interest over the next year.

Have no doubt, I approach this with maximum caution, but in the end, we have to trust our own judgement -and accept it if we mess up.

Will post soon re: corporations law & AIO which some might find interesting.





Cheers.


John S.