Nah, got my LVRs mixed up, but after some reading it turns out that the point that a margin call would be made really has no relation to the stock dropping say 30 or 40%; rather it depends entirely on how close the original loan was to the max LVR. If someone borrowed 39% of their parcel value, and the max LVR was 40%, they would get called if it dropped even slightly!! So let's say a bunch of buyers got in at say $2 SP with margin loans, they could have been getting called anywhere from $1.99. There wouldn't be some lower point (e.g. $1.50) where they would all be getting called / forced out. Everyone's point would/could be different as the would likely have borrowed different fractions of the max LVR. I think someone was just trying to spook us with fears of more calls about to happen...
GXY Price at posting:
$1.55 Sentiment: Buy Disclosure: Held
