Loading ...Dear Goldie,The Margin call was a story by itself….I was having problems with my Franchise Co. They had the Company for sale and would guarentee a 15 % net to the proposed buyer in order to get the promised 300 million price.They were pushing Franchisees to the breaking point trying to extract as much as possible from them.
I had a $10,000 savings that was to be used to make a once a year additional rent payment .They were being a bunch of pricks with me ,so I used thier rent payment to buy some time with the broker. Wesley said “If you can send me some money ,I can buy some time with all the confusion going on in Wall ST…Everybody was grabbing cash anywhere they could.That led to the plan..I had one hour to wire the money to Alex Brown INC the Broker in NYC or I would be sold out .I ran out of the business.. to the Bank and asked the Manager to WIRE them the $10,000 I had saved for the rent payment before noon .the Bank manager said he could get it there.He was well aware of what was going on in Wall st.,but didnt know why I had the $10,000 saved.Withen minutes Wesley called me back ,,we bought some time ,he said hope for a bounce off the bottom ,then be prepared to start selling and raising cash to get back to required Margin amounts..It worked ! I got a bounce back and started selling .. I had 50,000 various shares in a few companies.Every point up was $50,000 …..at one point ,I got there ! Finally I said to myself…IMMM BACKKKKK… I chuckled at the thought of my preditory Franchisor fighting with the Broker who wanted to sell me out at the bottom. for the $10,000….I figured screw both of them,they were both willing to sell me out at the worst possible time. My plan worked ,in the end everybody got paid….because I kept control of the cash.