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kickst@rter

2,988 Posts.

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18/03/20

09:53

Post #: 43553184
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Originally posted by onesurfed: ↑

My thoughts on the sudden drop here in the U.S.:

Ironically, since KZIA held up, relative to the rest of the market, its value has increased so as to be a "concentrated position" in a lot of accounts. Special margin requirements mean either selling Kazia or everything else, depending on weighting in Kazia
That is, the strength of Kazia could make it a "concentrated position". If it's 50-70% of portf, then req is 70% equity. If 70% and above of portf., the margin req. is 100%.
Basically is a cash, not margin account over 70% equity. I consider those requirements to be detrimental to Kazia investors, but hey, I don't make the rules.
People can be forced to choose between Kazia and everything else, if they can't make their margin calls.

I had to deal with this situation some months ago. Sold everything else, plus injected cash, so no longer own Kazia on margin, just cash.

Expand

Index funds will be rotating out of globalisation and into safe heavens. For those who think gold is a waste of time then the biotech index is a good sector.

Obviously, commercial airlines, cruise ship operators and tourism is screwed.

Biotech, domestic healthcare manufacturing and food staples will still have export demand and so the market will naturally favour these.

Last edited by kickst@rter: 18/03/20

KZA Price at posting: 54.5¢ Sentiment: Buy Disclosure: Held
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