20mn buy at 14.5!, page-23

Still thin that Mount K has decided to Sell stock from bounds hold all warrents. Simple reason is short term gain except for a few is capped at 20% long term if you are a high fliyer could be taxed as high as 40%.
Plus there are state takes on top of this.

So buy and sell a warrant all gain taxed at high %. Sell for 11.25 incure 2.25C of tax on a 6.25C gain, if you are in one of the uper US tax brackets.



Now cash is loacked up in bounds the only way to get it out is Convert. Convert a bound, 10 C has no tax implication it is the puchase price. Sell for 11.25 Cents total tax on raising 11.25 C, 0.25C one fith of selling warants. for same price

Now hold Warants stock for year Sell for 20C. profit of 15C but at long term gain. so total fed tax 3 C on a 15C gain just a ltle more than the tax paid 2.25C on a much smaller gain of 6.25C, on transfering or selling Warant stock quickly. Why would anybody dispose of warents before year up.

I have seen nothing in trading activity that indicates they are not holding warants stock and disposing of bound conversion stock as fast as posible, (excepting some of original 3.8 warents. )

This is why before retirmant I measure all my investments on a anualized rate after taxes and inflation and compared how I was doing to an index like S&P reinvesting dividends.

Alternative Minimume TAX AMT I am very familare with AMT. I do understand that holding the Warants could cause an AMT tax for the holder. However when the stock is sold this becomes a credit to the holder. So it is nothing more than an interest free loan to the goverment from the time you exersize the warants to the time you sell. Not worth concidering for this example. Thought I would bring it up before somone else does, and uses it to blow smoke. Smoke would be saying I don't know about it because it was not mentioned. I get that allot.

In conclusion I think the only strong motivation in MT K activity is to minimize taxes for ther high income cliants. I do not think there is any takeover motivation. In a few days we should see no longer a majority stock holder sale like last time and I predict the volume will match the Bond stock exakly like it did last time at 333.333.332 M shares. I also predict the price will go up from 11.25C but not nearly as sure of that, if it does there are two posible reasons why.