For all my fellow monkeys reading pleasure, so without further ado, Margin of Safety: http://www.my10000dollars.com/MS.pdf Boom. Heres the Amazon link if you wanna get yourself a hard copy for only $820: http://www.Amazon.com/Margin-Safety-Risk-Averse-S…
20 Aug 2011
mod (Andy) note: "Blast from the past - Best of Eddie" - This one is originally from September 2010. If there's an old post from Eddie you'd like to see up again shoot me a message. I've received a few messages from you guys about my recent DXD and SLV options trades, and I wanted to take a minute to explain part of my trading strategy when it comes to options. As you know, the silver trade is working well so far (up 18% in 8 trading days), the DXD trade not so much (down 66% in 9 trading days). When you invest in something - anything - the value of it should rise immediately. If you buy a
23 Mar 2013
Margin Financing is an item that incorporates numerous degrees of danger. In an unpredictable market, if stock continues to decay, the customer might be needed to add extra money or stocks to the guarantee portfolio to dispose of the creditor to expand the security esteem.
26 Nov 2020
Today some people announced that there will be higher Gold Margins, Gold plunged more than $15 within minutes. In times of HFT drawdowns tend to be more heavier than experts say... BUYBUYBUYBUYBUYBUYBUY ------------------------------------------ SELLSELLSELLSELLSELLSELL
04 Aug 2011
This is third in a series called "Prime Brokerage Stories," real life experiences from a close family member who worked in this area of the Street for 30 years. For an introduction to PB so it all makes sense, see here: //www.wallstreetoasis.com/blog/what-is-prime-brokerage Even though the money in PB can be very good, let's just say that sometimes I wish the compensation was tied to the amount of money and embarrassment you save the firm…on an "I told you so" basis. In the late 90's, I had moved on from the white glove brokerage firm from the previous two stories and was working as a vice
15 Aug 2013
Recently, my trading account was doing great until it hit a train wreck that wiped me out and more in a single day. Scary situation. I was trading a combination of ES futures and ES futures options and I made a big miscalculation in pricing. The blowup exploded, when the broker allowed me to buy on negative buying power. This additional ability buying did not not increase my buying power(meaning moving closer to zero since at the time my buying power was negative.
07 Sep 2011
When someone says "tell me a X company's margin" what should I say? Are they looking for gross profit margin ((Rev - COGS)/Rev), operating margin (EBIT), or net profit margin (NI/Rev)?
13 Mar 2021
Hi everybody! I have a cash account in Tradeking. I applied for MARGIN, but they denied to add MARGIN to my account(I have more than $2000 in my account), because they need my employment information. Actually I have no job now. What brokers can open margin account without checking of my current employment ?
13 Oct 2011
Hello everyone, Every bank that is financing commodity businesses (abn, ing, bnpp, rabo, macquire, anz, Soc Gen, natixis and other) is active in the energy sector. Some operate only in the energy sector claiming that metals and especially agri businesses are on a much lower scale, thus deals are quite small and financing required is also insignificant (this is impression I got speaking to a couple of bankers in this area). At the same time, ADM, Bunge, Cargill and LDC operate only in agri (except Cargill also trades energy and LDC is active in metals) are the largest existing today physical traders. If the deals in agri were small then I would expect seeing oil traders as the largest ones, while agri traders to be relatively small and maybe even seeing no agri-only shops.
31 Aug 2014
Ok so this hypothetical scenario isn't hypothetical for me, my parents are well off and have offered to loan me any amount of money up 100% of what my current portfolio is worth under the stipulation I pay it back within 10 years and pay off at least 3% of the total borrowed each year at year end. There is no interest at all so it is basically free debt. What would you all do? On one hand its an amazing deal since my capital is highly limited and I spend an incredible amount of time managing my portfolio and researching investments (I've had to give up great investments for even greater ones) but on the other hand the market is so high right now I;m terrified to be 200% invested in this market with these high valuations.
16 Jan 2014
Here is a current sheet of large capitalized stocks (market capitalization of more than USD 10 billion) with a dividend yield of more than 5 percent and high margins. The operating margin of the observed companies is at least 25 percent. 15 stocks fulfilled these criteria of which 7 have a dividend yield of more than 7 percent. Here is the table with some fundamentals: http://bit.ly/p6T2oY Which one would you buy?
22 Sep 2011
Last week, I went in on margin to invest in a company I have been following for a while, that fell 30% in the last month. So far I am up on the trade, but went in with the intention of it being a long-term investment. However, I have a horrible feeling that this market is way overinflated and it may not be the time to go in on margin. The market keeps going up, but all I seem to hear about in the news is the demise of America and high unemployment. Who is a bull and who is a bear for the 12 months ahead of us?
21 May 2011
I've always thought of EV / EBITDA multiples as a function of EBITDA growth and cost of capital (or riskiness / stability of cash flows). However, someone I know to be fairly experienced in finance recently mentioned that higher margin businesses trade at higher multiples than lower margin businesses. Is there some aspect here other than something that can be traced back to EBITDA growth / riskiness of cash flows? I feel there may even be some counter-arguments here, for example, a higher margin business has a greater threat of entrants which is a risk to cash flow stability. Would love to hear your thoughts...
18 Jun 2014
Hi - I'm just trying to understand margin to equity ratio and please bear with me, but if anyone can help it would be appreciate. I understand how it's calculated - nominal trading level / margin, so if an account is $1m and 250k is required then this M/E ratio is 25%. However, what I'm trying to understand is how the lower the ratio it's considered less risky. I can understand that it makes a trader more efficient if they're using less cash if their margin to equity ratio is say 5% but doesn't this mean that they're just more levered up? If the margin to equity ration is 5% doesn't this mean they're using 20x leverage and if it's 50% then they're using 2x leverage? The more leverage up you are shouldn't this be riskier?
17 Apr 2013
If there are two companies with same industry, same region, similar cap structure, Wacc/discount rate, same capex, working capital. One has a higher margin on its sales, one has a lower margin on its sale. Which would be trading at a higher EBITDA multiple if their EBITDA is the same? I'm trying to think of it intuitively, since one has a higher margin on its sale, its more efficient right?
07 Feb 2014