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Re: extelecom post# 1017

Sunday, 02/11/2007 3:41:24 PM

Sunday, February 11, 2007 3:41:24 PM

Post# of 1177
Hi Extel,
Just a thought on the 200% funds. So I'd be selling one as I were buying the other. Problem? Well in any long extracted bull/bear market you could see one or the other dipping below $5. Tons of people on margin out there! A dip below $5 would cause forced covering and liquidations. Also, it would prompt a reverse split by the fund to stop it from happening anyway. How are they going to manage all that dumping at one time? Just my 2 cents, but a $100 inverse 200% fund from 1991-2000 would have ended up at about 2 cents anyway without some type of intervention. Ken

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