margin loan, page-29

Hi Dunworkin,
Well done on the gain.
I wouldn't be doing a margin loan, at least at that level.
Feel that the odds are that CER has a good future, and that a year from now, may well be a lot higher.
Problem is , with a margin loan, it is not just where it is in a year that matters.
A short term panic, and a sharp temporary drop in cer and the market, could find most of your present profits being sold from under you.
Very depressing when the price goes back up a week later, and you have lost a large chunk of your holding.
Ok if you have lots of cash to cover such possibilities, but if that's the case, why pay anz 8.75%?
Also have seen a few disasters last year with unilateral changes by brokers to what they will lend on.

good luck either way.