Got this from IB several hours ago. Could be another reason why these low cap companies are getting crushed:
Margin Increase on Low Cap Securities
Please be advised that IB is increasing the margin rates to 100% on low capitalization stocks (currently defined as companies with less than $250 million in market capitalization). The increases will occur in stages starting with an increase to 50% beginning after the US market close on Friday, May 18, 2012 and will be implemented as follows:
30% - Friday, May 18
40% - Monday, May 21
50% - Tuesday, May 22
The list of stocks which are subject to this margin increase can be found on the following page:
http://ibkb.interactivebrokers.com/node/1788
You will be notified prior to any subsequent increases.
Upon implementation, any of the incremental margin increases may result in a margin deficit in the account. A margin deficit implies that an account becomes subject to automated liquidation. Please carefully review the current positions within your account and adjust the portfolio accordingly.
Interactive Brokers Customer Service
It seems like IB may be getting ready for the crash.
