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Hi Ian
While I would much prefer to be upfront about the reason, if you EUA holders are sceptical, can you imagine the bank..
For me it makes sense, I was more concerned around the legal side of things. I appreciate your response.
Cheers
Just back from a lovely breakfast!
Morning CorunnaB,
My point earlier was about my flippant post where I pointed out you could take 'equity out of your house' to buy shares!
and said, Don't do it!
I myself back in 2001 took out a £15,000 short term bank loan for the BT Rights Issue, I was totally upfront with my bank, and they were happy with my answers to their questions! My mortgage with them was paid off and I had no other loans!
You know your financial position, and what you can comfortably afford in repayments, don't try and defraud your bank by not telling the truth on what the loan is for, because, if they find out, they MAY try to get you to increase the repayments to get this loan off their books as quickly as possible!
"While many lenders are ready to accommodate your needs, it’s important to remember that your loan purpose can impact your interest rate and terms. Some lenders have a minimum amount you can borrow depending on why you need a personal loan"
Not trying to put you off, you know your financial position, just tell the truth to your loan provider, and explain your collateral position, a loan for a house extension will come at a lower interest rate than a loan to purchase AIM stock I'm sure, banks need to safeguard themselves even more at the moment due to the knock-on effects of COVID!
Just make sure 'God forbid' that if anything untoward was to happen to you, your family and their home would not be put at risk!
Good luck with whatever you choose.
All the best
Ian
TBF, CorunnaB,
I did a very similar thing to your plan in the early nineties, and it set me up for life.
As you say, it's about being grown up enough to live, or die, by your own decisions.
Good luck, I would do the same in your position.
While I appreciate concern. With all due respect, I would prefer if you don't push you own insecurities on me.
I am very sure of myself, no chance of turning into a gambler or suicidal for that matter. I would never expose myself to such situations. There is no question on affordability or lifestyle change as a consequence.
Rich I do understand your point and respect you taking the time. But for me there isn't an 80% chance the investment will fail. If I pay a loan term of 5 years (for example), I would say its the 80% in my favour that eua if not sold will be valued at more than where we are now.
Bad drills do happen but here I don't feel that is the case and have considered it.
It's all relative to the person but please do not push your insecurities on me, I am a big boy now and am not asking for financial advice it was more legal advice on where I would stand.
GLA
That is a very good point Ryan, Stork you do come out with some utter b*llox at times seriously you are the one opening CFD's (for piteous amounts of course) however this is a road to ruin as evidenced by the infamous jub capitol and gammy teeth losing 400k!
I concur borrowing is crazy but your hardly a shinning exmaple of fiscal responsibility are you?
EIEO1,
As you say it is highly unlikely that anyone will lose it all here but the issue is reccomending to someone you don't know to borrow money to buy shares.
Yes some people are asset rich / cash poor but GENERALLY it is a very poor idea and is not to be recommended.
What people decide to do is entirely upto them!
Gecko - feel free to keep attacking me. I don't care in the slightest, having been around these boards for (I've just checked)...exactly a decade today ;), seen this behaviour tens of thousands of times (or more). As I say, it usually just means the person is overexposed and lashing out, or trying to attack people not ramping because they want to sucker people in.
Anyway, I'm off now anyway, you'll be glad to hear. Time to head into the office for once.
Richie not rich
Looks like a pompous arse to me And a wrongun as well
Parasite alert. The mushroom stork advises to not loan money, but will lend shares to short them which could have a far worse effect. You couldn’t make it up. Immoral twxt
Ryan
When posters refer to losing ALL the investment in EUA, I personally think that is a crazy statement.
To me the only current downside is if the sale negotiations fail to materialize. That being the case no doubt the share price will take a hit.
That said, £35m in the bank, JV with Rosgeo, current production and the distinct possibility of a resources upgrade.
Investing 10% of spare cash in sensible, but will never likely result in a life changing investment.
Personally I like Geckos comment, go hard when finding a stock that has the distinct possibility of major returns.
Gecko - I don't have any position on this (short or long) it's one of a few companies I look in occasionally out of interest to see what happens but is far too high risk for me (ironic I know considering some things I take a punt on :p).
I do tend to find that people who are overcommitted, or just shamelessly trying to sucker people in, try to claim any post not advocating buying must be an "evil shorter" though ;)
Isn’t that what you’re doing when you are shorting the share? Going long can only make you loose what you put in but going short can loose you a hell of a lot more?
TMS
Have found a revise valuation yet for eua based on the 126k ounce / annum from the last RNS . It must be a little more than nothing now surely
Ian is 100% right, the reality might not be as stark as losing your home in this instance however the stress and implications mentally if things do go wrong are often not considered. It is no good walking round with a set of rose tinted glasses on when dealing in AIM you have to be a hardened realist, seperate the trading fund from day to day requirements and be quite cold about the possibility of losing it which are always very real.
Borrowing is not the way forward no matter how good it looks IMO.
Sensible advice, Ian. Anyone thinking of borrowing money to gamble on AIM junk needs to take a break from the market.
CorunnaB - To answer your original question, your bank probably won't care or check, is the reality. That really is a case of probably though - and there'd be nothing to stop a particularly officious bank employee from making life difficult for you - unusual as it might be. Therefore chances are you'd be able to do it and get away with it. Not that it's acceptable / a good idea.
As to whether you should, I'd say it's an extremely bad idea, and I'm saying this as someone who once did something similar (in a way) and it went well for. The reality is, despite having a blinder with the stock I picked, I'd still say it was a bad idea, and really was a loan to maintain a large spread position, rather than see it closed at the lows. I wouldn't have borrowed just to buy more stock and increase my risk (and I could easily afford it if it went to zero). I'd also factor into your mind an 80% likelihood (or higher) that your bet fails, the stock tanks, and how that would affect you. If you'd still be fine - with comfortable amounts of money - then that's one thing. If it puts you in a struggling position - avoid doing it like the plague.
I'm not going to come on this board saying "don't invest in this - it's rubbish" and annoy everyone. However it's most certain to say there's a considerable number of experienced people who are extremely skeptical about the merit of this stock (to say the least) and it's a million miles away from a sure thing. Anyone who's invested in resource stocks for any length of time would never say this is anywhere near even a 50/50 shot from this position (as we've all seen big claims/reports about resources that never materialise).
I'd therefore tread extremely carefully, if putting more than 10% of your free cash into something like this, which would be very risky in most people's eyes imo.
I'm sure some people will try to tell you otherwise but hand on heart I believe everything I said is true+sensible.
Morning Ian, enjoy your breakfast! See you soon! ;-)
Corunna
It’s all relative if you borrow money to gamble and lose it and still live that’s ok but there are people who borrow money then lose that then borrow more extreme case just think of Nick Leeson
There are thousands of people who kill them selves due to debt
I am ok as if I lose the lot I have got enough to carry on until retirement and still have holidays so no worries for me
Morning Sax, Ian Tilly and All from sunny Norfolk. A brilliant day yesterday let’s hope for more of the same today. I’m off to Cambridge today to see my eldest brother so I’ll miss most of anything that happens. I hope everyone has a good day and it goes without saying that I hope that there’s an intra day RNS so that I can smell the shorts burning in my car.
ATB Pete
AAAH Ian,
now Ive jinxed it for todays entrants!! haha it will be lively session thats for sure, but will we yoyo or will we go go ?
hope its the latter
I have no idea why anyone thinks a loan would effect a roof over my head. If that is the reality of your cashflow per month then I would avoid it too.
For me it wouldn't change anything as far as lifestyle goes, just a little I wouldn't be able to invest somewhere else!
Thanks for your concern.
Morning Ian & all
Totally agree that you should not spend what is not yours ie borrow to gamble.
I have got a lot on here but if it goes t.it’s up I will still have a roof over my head and be able to live ok
I am a bigger risk taker than the wife she is happy at 0.05% but that’s less than inflation so you actually are getting worse off I have managed to get her into an ISA with HL so it will help her
Have a good breakfast and come back to a big blue rise
As usual GLTA
Good morning Saxonaxe and all,
Today's hopefuls are:-
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AgentB - 23/09/21 - Happy Birthday to your middle daughter! :-)
TonyShu - 23/09/21 - happy Birthday, Another year older :-)
&
Saxonaxe - 23/09/21 :-) Can't leave you out mate! :-)
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Good luck everyone!
I have my Thursday breakfast meetup to go to!
Good luck to all holders!
Those wishing to find funds to buy more EUA shares!
Rather than take out a loan, Why not take the equity out of your house, you could get 50% of the value of your house!
I mean EUA is a dead cert, right:-)
I'm JOKING, anyone thinking of putting themselves in such a stupid position, where they COULD lose the roof over their head, or worse! NEEDS a SERIOUS rethink on their strategy to riches!
If you have spare cash YOU can INVEST it!
If you lose it, you just lost that spare cash, and don't have it anymore!
Investing WHAT you don't OWN, but is BORROWED is a sure-fire way to a GAMBLERS mindset, and you have a SERIOUS problem!
Don't do it!
GLA