Re: Would you borrow to buy?
in response to
by
posted on
Aug 01, 2014 07:33PM
Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications
I like the answer dvsk14 gives but I think you are smart enough to know that. I say this because you are not mentioning margin. So you probably know the pitfalls from that. Someone else mentioned that too.
I'm a big gambler so be careful with what I say. I have borrowed twice from my personal line of credit to buy Zenyatta around $2.50 each time. As long as I can easily make the monthly payment, I am in control. The price I pay is irrelivant as long as it is not sky high. So I had a target of $5. Anything paid under that for Zenyatta is a good deal. Right now I feel like I am rowing the boat alone and there may not be many who would think this way.
I do not like the amount you mention to be honest, but you know where your limitations are, or you should know. So to put my case in perspective, I borrowed $5,000 each time and purchased 2,000 shares. I paid down the debt at the rate of $1,000 per month. My lifestyle was not dampened by this payment. I'm not a big income earner either. It is not what comes in but what goes out. We are careful spenders. These are important things. Don't go in too big. I'll be doing it again soon but some other things have to before I can feel comfortable making the move. I was joking when I said I was a big gambler. I'm more a calculating risk taker. What I have to pay back if this does not work out will not hurt me too much.
Zenyatta does not belong on the Venture exchange so I do not count it in that class of stock. My objectives might draw some snickers but that is ok. I figure that Zenyatta is a $20 stock at minimum. I hope you are sitting down for this..............., it could fetch as high as $60 at the top end.
I am a strong believer that AE and his advisory board know exactly what they are doing. Time and no news is causing many retail to lose sight of the end story and they are selling out of fear and frustration. Time is needed to test and know exactly what this graphite is capable of. The more time this process takes the more I am assurred of a higher share price.
Borrowing is ok as long as one does not get greedy. My measly 4,000 shares bought with other people's money could bring me $100,000 to $200,000. I might not be a big gambler, but I dream big. Zenyatta is going to be a big winner. I can wait.