SCAMS-R-US

[XenaLives]

Schwab sells its customers down the river -

On 3/23 they pulled IMGN off of margin status because of "volatility" that did not exist - but they certainly created it....

Pink arrow indicates the 23rd.



This delayed a long term breakout for the stock and allowed market makers to consolidate.



The Big Boys were grabbing every share they could get their hands on...






Board references:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139605057

megawhat Member Profile megawhat Tuesday, March 27, 2018 5:22:09 PM
Re: None Post #
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of 505
Schwab margin called all imgn on Friday. Declared it non-marginable. I’m sure today had a lot to do w the calls coming due.


skitahoe Member Profile skitahoe Tuesday, March 27, 2018 5:46:18 PM
Re: megawhat post# 498 Post #
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of 505
Did they give any reason for such a move. I haven't used margin in years, but that sort of move is clearly aimed at manipulating the stock, especially given the recent share growth where investor's may have purchase either more IMGN, or other stocks based on the added equity.

I'd like to see what the SEC thinks about such manipulation, or if it's being done by any of the other brokerages.

Back when I did use margin, I was forced to sell some shares when a broker changed the rules, but that was when the price was below $7. Things may have changed, but last I heard $7 was the point that all stocks are fully marginable, but brokers do have their own rules, but usually with certain justification. Has Schwab justified what they've done.

Gary



skitahoe Member Profile skitahoe Tuesday, March 27, 2018 6:38:39 PM
Re: skitahoe post# 499 Post #
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I spoke with a Schwab broker who said they made the move due to IMGN's volatility. I indicated that IMGN was routinely making new highs weekly, but what they did was manipulation. All he could say was that they had the right, and they warn their clients about the risk of using margin.

Gary


megawhat Member Profile megawhat Tuesday, March 27, 2018 6:41:46 PM
Re: skitahoe post# 499 Post #
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Said it was due to the market volatility w the trade war... did it to numerous stocks to protect Schwab. Would be interesting to see how many sells today were due to Schwab accts


skitahoe Wednesday, 03/28/18 08:32:22 PM
Re: None 0
Post #
505
of 506
I spoke with a Schwab broker who simply stated that they determined the company was too volatile, and they had the right to do it. It should be illegal, but isn't. If they didn't intend to cause the stock price to drop precipitously, they could have notified investors of their intent, and done this in stages which would have permitted investors to plan a strategy for losing the margin coverage.

Fundamentally nothing has changed, trial results still look great. The peek at the Phase 3 trial appears to be coming next quarter, which is later than originally anticipated, this can only mean that people in the trial are living longer, or at least not progressing as quickly as forecast. I suspect that shortly after the news that the trial is progressing, the stock will again hit new highs. I feel sorry for the Schwab customer's who were forced to sell some of their stock because of the Schwab decision, but I suspect that many others also sold on the downturn created by it, and the Institutions were happy to purchase lower priced shares, and probably participated in helping to bring it down.

We all recognize that individual investors are at the mercy of those who manipulate the market. This was probably one of the clearest cases of watching them at work.

Gary