Banks will take 2P as collateral for company loans, but I doubt if they will STX stocks as collateral right now against any personal loans without a huge markdown - we are talking LVR of 10-20% max. Based on understanding, LVR is assessed based more on the earnings stability of the company with some due considerations given to the stock's beta. The more volatile the earnings and/or share price is, the less LVR will be attributed to the stock. When it comes to STX, it will be at least 4-5 years away before any bank will issue any LVR against it as production from WE is still some time away and it will need at least 3-4 years of earnings stability before any bank will touch it IMHO.
618
STX Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
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