The interest doesn't scare me even if it's at 7.5%. If I hold the investment on margin for 3 months then the actual interest charged will be 1.875% (7.5% x 3/12) of the borrowed money. Which would be $113 over 3 months on $6,000 of borrowing. If I buy 3,000 shares at $2/share and the stock goes to $3 then I would still have $2,887 profit.
I might wait and see if uwti falls to $1.50 before I purchase additional $6,000.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.