.. the trend is your friend .., page-13

You are quite right Brucey.

With the substantial fall that ARQ has had, in retrospect selling made a lot sense.

I didn't anticipate such a substantial correction, which is still continuing, in the face of a strong energy price - oil was in the $70s for months.

However for purchasers/sellers of shares the tax laws do not treat all shares equally which complicates things.

Shares sold after 12 months attract capital gains tax on 50% of the capital gain at one's marginal income tax rate compared to tax on 100% of the capital gain at one's marginal income tax rate for shares held less than 12 months.

Any sale of ARQ or decision to hold has to be weighed up with the consideration that ARQ is attracting capital gains tax on 50% of the capital gain for some investors and if they sell ARQ and purchase another stock, then for the next 12 months, tax will be at 100% of the capital gain on that stock purchased, not 50% of the capital gain as applicable to ARQ, should it recover.

Using another example, if an investor put $100,000 in a company and after 11 months the shares are worth $200,000, after tax the investor makes approximately $10,000 less by selling than compared to waiting another month and selling when the shares have declined 10% and are only worth $180,000!!

As I said, I didn't anticipate such a substantial correction. If I had, of course I would have been out.

It is always better to pay tax than not having to pay any tax because nothing has been made!

I am still in profits in ARQ, but of course they are now peanuts compared to what they have been.