Installment rollover Simon

[#1]

last time bugging you... I got my fsrs thank you any idea whats happened to sab?

[john_1]

Some dude is drinking your profits mate...

[barry_1]

Yes thanks,i'm very chuffed to get 147 extra per thousand,SBK has been very fair and with not charges,i cannot now see how anybody can still buy shares when installments are available.Mind u its having a negative effect on good shares for example like ASTRAL as it just does not pay me to invest the amount i would have liked to.Please extend your range ASAP.

[#4]

I agree barry, Im still trying to find the catch with installments? Its like a free loan from the bank. or am I missing something?

[john_1]

Not free ...prime plus 2 or somthing like that!

[Brazen]

Love them too. Full divi, some gearing but far less risk than SSFs. I was in installments with all that tanking a few months ago, and while I had ugly losses they've all come back, and they're in profit now. You'd battle to do that with SSFs unless you have the cash to meet margins. And then you need nerves of steel.

[barry_1]

Nope,y're put it in a nutshell,perhaps they are giving some back on warrants that expire out of the money,fortunately never happened to me,but in my early warrant days lost badly with time decay!

[#8]

how does this get charged?

[john_1]

TZ tke the offer price + the settlement price - current cash market price= cost of borrowing, The interest is included in the price and each day if the market was flat your instalment would lose value.. it is just like a SSF as the decay is linnier.

[barry_1]

John,Tribalzone,....Simon assures there are no charges for roll over,of course there are initial charges when buying.

[john_1]

True barry no comms just more interest.

[#12]

I see said the blind man

[john_1]

Tz you will see the lowest borrowing cost is Investec hotedds but there is that little thing called a barrier, STA have the highest as there is no barrier and normal instalments have prime plus 2..

[SimonPB]

an whent he barrier gets hit - you loose all pro rata interest...

[Brazen]

That barrier is a problem as we saw a few months ago. You may as well go all out and do SSFs. You still liking the EDs?

[#16]

and the SABs that have gone awol... any news?

[SimonPB]

will chase

[john_1]

Exactly, so you have to look at the market and the share, ie a netcare vs amplats.. in truth you should never be holding it close to the barrier as it would mean that you did not keep stoplosses in place..One last thing TZ the gearing is a relationship of how much you borrow realtive to the share price... a x3 gearing means you borrow 2/3 of the shares value if it is trading at x4 it means the share has fallen since issue.

[john_1]

Barrier is not the problem if money managment and stoploss are in place.

[SimonPB]

TZ, strate fell asleep and teh SAB and IPL STB's will only arrive tonight.