One these days, TD Waterhouse is going to re-evaluate ONC and offer margin on it. I personally will be purchasing a small portion of ONC shares using that available margin but will do so with extreme caution.

First of all, TD will only allow margin on a stock that is over $3.00. So, those that are either short ONC or those that just want to accumulate lots of cheap shares, they may attempt to drive a stock price below the $3 threshold so that those holding the margined stock have to sell them (or come up with the cash to buy them). Driving a stock below $3 then having those margined stocks sell drives the price even lower. This is great news for someone shorting but also great news for someone like CIBC who try to accumulate at low prices.

When you purchase a share using margin, that share goes on a short list. It is available to a customer of the brokerage or the brokerage itself to SELL SHORT. This puts pressure on the share price as a result. The only way that you can assure yourself that your margined share is not shorted is by putting in a sell order in for it. So, purchase a share on margin at $3.50 and then put in a MONTH LONG sell order at $4.50. Helps protect your investment.

Remember to renew the sell order...keep pushing the deadline date out from time to time. If your sell order expires, your shares become available for others to short.