Sandminer, Why would I sell? - I believe MPO has a bright...

Sandminer, Why would I sell? - I believe MPO has a bright future. Once MPO pays the tax on these recent gains, they can distribute profits by way of dividend that are tax paid to the extent of the company tax rate of 30%. It costs them nothing to add that extra 43%!

btw - MPO could pay the company tax on this profit right now, or sufficient of it to cover any franking credit requirement and distribute the franking credit the following day via special dividend. It is commonplace to pay tax in advance, in installments etc.

MPO, for all its potential must be considered speculative. As such, after a lifetime of speculation I have learned the benefits of periodically "taking something off the table" - whether I'm playing poker, bridge or the stockmarket.

In circumstances such as these, buybacks have little to recomend them.