Margin Calls

I have got interesting email about today's situation with ELN and BIIB:

"Shawn (the broker): Hey, Rich. It's Shawn.
Rich (the client): Hey, Shawn, what's up ?
Shawn: We got whacked on the Elan this morning.
Rich: Aw, shait. We just bought it. What happened ?
Shawn: Well some guy died from the Tysabri.
Rich: Yeah, so. One guy.
Shawn: Well, yeah and another got some rare nervous disorder.
Rich: Okay, so. One guy died, one got the shakes. What are you telling me ?
Shawn: They withdrew the drug from the market.
Rich: No.
Shawn: Yes.
Rich: Aw, Rich. What the frik. I just bought the stock. Should we buy more ?
Shawn: Well...
Rich: Where's it trading at ?
Shawn: Umm. 8.
Rich: 18 ?
Shawn: Uh, no. 8
Rich: $8 ? $8 ? Rich, you told me this was a $500 million company. What do you mean $8.
Shawn: Well, it is.... but people are panicking.
Rich: Shawn, sell it send me the difference and don't call me anymore.
Shawn: Well I can sell it, but the problem is, you'll still owe us $5,000.
Rich: $5,000 ? You sell that stock and you stick that $5,000 up your....."

Any serious comments?

Lojze

Hmmmm , was watching the Elan stuff on CNBC today , scary stuff eh . Opening bid/offer was gonna be $20 or something from $36 ish close ??

Kinda reminds me of the day my Marconi holding got slashed from 2.20ish to 1.00 on a Profit warning , OUCH !! not a great day ( thankful a very distant , tho still painful memmory ) , I can feel only Sympathy for thoseElan holders

Margin calls are wayy too scary. Thats why I don't use Margin

More like € not $