I am worried ! Please share your views.

EGG · 1 I am worried ! Please share your views. Tue Apr 14, 2020 8:46 am

EGG

Senior Equity Analytic

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Dear All,

Can you kindly let me know if the market will drop further when it starts trading. If so, what will be the approx ASI index we are looking at. I have a portfolio of 3.6M and 80% outstanding. My outstanding keeps increasing when the portfolio drops. So I am worried if I should sell and exit when it starts trading. If not, my portfolio value will not be sufficient to cover the outstanding amount. Also, I have no way to pump in cash to settle the outstanding either.

Please let me know your views pls.

Thanks

wallstreetguy · 2 Re: I am worried ! Please share your views. Tue Apr 14, 2020 9:48 am

wallstreetguy

Senior Manager - Equity Analytics

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Equity Analytic,

I completely understand your position as I was once in such a position a long time ago. I'm sure many other members can relate.

To keep things simple, liquidate everything. SELL. Try to sell at the best prices you can and exit from the market for now.
I can give you detailed reasons why including analysis in terms of technicality and macro level. But to make this easier,

I'm sorry to hear about your outstanding amount. That's a lot of leverage you have used during these times.

May the force be with you.

Quibit · 3 Re: I am worried ! Please share your views. Tue Apr 14, 2020 10:34 am

Quibit

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EGG wrote:Dear All,

Can you kindly let me know if the market will drop further when it starts trading. If so, what will be the approx ASI index we are looking at. I have a portfolio of 3.6M and 80% outstanding. My outstanding keeps increasing when the portfolio drops. So I am worried if I should sell and exit when it starts trading. If not, my portfolio value will not be sufficient to cover the outstanding amount. Also, I have no way to pump in cash to settle the outstanding either.

Please let me know your views pls.

Thanks

Most likely market will fall another 10%-20%. If you sell now, you will have to settle outstanding from all your sales proceeds and you will be left with nothing. SEC has offered a moratorium on margin payments and therefore it is wise to hold on to your shares without selling. Whether you sell now or in another 3 months your position will not change. At least by holding on to the shares you have a chance of recovery if in the event market recovers within 3 months. This is provided that your outstanding are secured only by shares and not personal assets.

This is my personal option and don't take it as an investment advise.

Junior investor · 4 Re: I am worried ! Please share your views. Tue Apr 14, 2020 10:56 am

Junior investor

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@EGG,
what do you mean by 80% outstanding?

kasun_gimhana · 5 Re: I am worried ! Please share your views. Tue Apr 14, 2020 12:35 pm

kasun_gimhana

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What will happen IF you do not settle the margins? how can they recover collateral?. anyway 10 % drop confirmed. you are already delayed. but still, sellers are winners.

Teller · 6 Re: I am worried ! Please share your views. Tue Apr 14, 2020 12:35 pm

Teller

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Dont worry, i have a secret to win

wallstreetguy · 7 Re: I am worried ! Please share your views. Tue Apr 14, 2020 12:41 pm