There are 42,000 shareholders in BRN.
It took 7 weeks from the high of 2,34 to reach the $1.00 mark. So I wonder how many of the 42,000 took any money of the table in that period?
My guess from looking at the volumes would be maybe 7,000 to 15,000. Most didn't, would you have been one of them without the benefit of hindsight.
I partially sold at 1.63 and got free carry, cash and rationalised out 4 underwater species ( I got cash for doing that as well)
I am happy with my decision.
But I'll put this question to you right now therefore taking away from you the benefit of hindsight.
I currently have you owning 400k BRN shares purchased at 6.6 cents for $26,400 at the current value of 47 cents they are worth $188,000 so you have a profit of $161,600 currently if you sold them.
I see you as a successful person who has enough surplus cash to be seriously investing in the markets. So I am giving you an annual income of $110,000. If I was still working that would be around my salary.
So you currently fall into the 32.5% income tax bracket.
Sell today CGT initially $161,600 minus 50% for a long term investment CGT discount so CGT drops to $80,800 CGT
So the tax calculation is:
$10,000 x .325 = $3,250 (up to $120,000 bracket)
$60,000 x .37 = $22,200 ( bracket $120,000 - 180,000)
$10,800 x .45 = $4,860 ( bracket over $180K)
In total $30,310 CGT leaving you with $157,680 from your shares currently worth $188,000.
Here is your current conundrum on this day last year 19 May 2022 BRN SP was 1.11 and your shares were worth $444,000 but for some reason you didn't sell.
If you sold today from the $188,000 you'll get $157,680 after CGT.
In the next 9 weeks before the June Quarterly report If it goes to 57cent you have made another 40,000. If it goes down to 37 cents you've lost $40,000. Decisions decisions. Sell today or not?
Two more things to think about. Coming back here from the future, my Delorean only had enough fuel for two shortish trips
* 19 May 2027 BRN Akida 5000 chip used in several popular products
SP $9.40 paying a franked dividend of 30 cents per annum
(your shares worth 3.7 million franked dividend of $120,000 per annum)
* 19 May 2033 BRN Akida 19000 chip now throughout the economy and still penetrating new markets as more uses are found
SP $105 paying franked dividend of $1 per annum
(your shares worth 42 million, franked dividend of $400,000 per annum)
I used CSL as a model who at on stage well after it had successfully been on the stage for a good number of years and well established increased the SP which at that stage from $30 to $300 in a decade. Looked at their franked dividend as well.
So Alwaysgreen what's your decision to be?
I think that you may starting to understand the conundrum I faced and why I want BRN in my super (no CGT)
cheers Lies
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