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MBL

Discussion in 'Shares' started by DaveA, 1st Aug, 2007.

  1. DaveA

    DaveA Well-Known Member

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    is there some news that i havent heard about this? It opened 7% down today and i cant really see any reason....
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  4. pthm

    pthm Well-Known Member

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    Time to buy some MBL shares? Or, will there be further free falls for the donut bank?
     
  5. DaveA

    DaveA Well-Known Member

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    yeah i saw that news, but really didnt think the funds would make that much of an impact on the bank as a whole.. the loses will be other peoples money not the banks...

    maybe people have reacted because they now know they are not perfect...
     
  6. Tropo

    Tropo Well-Known Member

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    Yeah right.
    Gapped down on open $ 6.5 today
    MBL is in the down trend from $92 (19.07.07).
    Currently at $74.65. So holders are down $ 17.35 so far...:eek:
     
  7. transit

    transit Well-Known Member

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    I hope so because i bought some today $76.60. Yesterday they closed at about $82 and dropped again this morning... i'm guessing it was 'cos the DOW dropped another 146 points. I also think people are over reacting to the sub-prime situation and over selling. Hopefully i'm not trying to catch the falling knife but these will be a long term hold.
     
  8. Tropo

    Tropo Well-Known Member

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    "Hopefully i'm not trying to catch the falling knife but these will be a long term hold."

    That is precisely what you did. :rolleyes:(IMHO)
    Currently MBL = $ 74.60.
    Anyway....Happy holding...:p
     
  9. crc_error

    crc_error The Rule of 72

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    MBL down 10.5% wow!

    Not a stock I own...
     
  10. FrankGrimes

    FrankGrimes Well-Known Member

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    This is what I thought... I don't see why it would affect the share price so much
     
  11. crc_error

    crc_error The Rule of 72

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    prehaps its time to buy a bargin!
     
  12. Tropo

    Tropo Well-Known Member

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    DaveA &FrankGrimes,

    Guys, it's irrelevant what you think....Market see it differently, and
    do not forget that Market is always right.;)
    But....hey....If DOW jumps up tomorrow say 200 points, who knows what
    happens to MBL.
    At the moment MBL daily chart looks like Hiroshima after II World War.;)
    Close at $73.70.
     
  13. transit

    transit Well-Known Member

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    Hmmm, looks like i better buy some more and average down my buy in price :cool:
     
  14. Tropo

    Tropo Well-Known Member

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    Nick Leeson thought he could average a loss and he managed to destroy a bank.
    Imagine what such an idiotic strategy will do to you.
    :rolleyes:
     
  15. vandalic

    vandalic Active Member

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    Nearly 19% down now from the $92, keep going! :)
     
  16. voigtstr

    voigtstr Well-Known Member

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    instead of buying as its falling, is it safer to buy it when it starts heading up again.. or is it just totally random :)
     
  17. crc_error

    crc_error The Rule of 72

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    because when it goes up, it will run to quick and you will miss the express train into the city.
     
  18. transit

    transit Well-Known Member

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    I think that's the general idea (the trend is your friend) but as crc mentioned, you may miss it. You can use a conditional trade like a Buy Gain which is a trigger that gives you a controlled entry to a particular stock. You instruct your broker to place a buy order when the price rises to a pre-determined level. The idea is that you're buying into a stock that has upward momentum.

    Tropo, yeah my comment was a bit tongue-in-cheek relative to my earlier comment about trying to catch a falling knife but i'm hoping that this could be the blue chip buy of the year at current prices.
     
  19. Tropo

    Tropo Well-Known Member

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    "The idea is that you're buying into a stock that has upward momentum."

    CORRECT !! :D

    "Tropo, yeah my comment was a bit tongue-in-cheek relative to my earlier comment about trying to catch a falling knife but i'm hoping that this could be the blue chip buy of the year at current prices."

    I made my comment - just in case :p
     
  20. Tropo

    Tropo Well-Known Member

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    And that process is not over yet.

    Macquarie Bank's fortress walls tumble | Herald Sun

    ....And that process is not over yet.

    If the value of senior loans continues to fall on US markets, Fortress will be forced to keep selling or to borrow money from other sources to remain within its banking covenants. Buying high and selling low is a recipe for losing money and investors in Fortress Notes are losing plenty.
    Just yesterday the ASX value of the notes fell 24 per cent or 18 to 57 for securities that were issued at $1.

    The fact that Macquarie Fortress management have already flagged a 25 per cent decline in the note's net asset value after a four per cent decline in the senior notes is a graphic reminder of the power of debt. It can magnify gains, which is why the most recently issued Fortress Notes forecast interest rates of 10.1 per cent.
    But when times turn bad, the losses can be magnified in ways that dwarf the few extra percentage points that investors were chasing.

    Worse still, there is no guarantee that the Fortress notes will continue making quarterly distributions, although management are hoping to do so.

    The lesson for the average investor is a simple one, particularly with the stock market looking very volatile.

    Chasing high income returns can be a very risky business, particularly if you can't afford to wear a capital loss.

    In this case a simple interest bearing investment returning six per cent would have been a much better choice than chasing 10 per cent through the use of structured debt.
    It is a lesson that will concentrate the minds of every investor in the debt and stock markets as "good time" debts batter down a few other fortresses

    :cool: