When it comes to financial, people can get very emotional and quite often making a rash decision based on CURRENT situation due to shorters and trolls are contributing to creating the illusions that the SP are collapsing to benefit them self.
Here are some points you need to consider before making that rash decisions:
Story being told: Has the story change? absolutely not!. Has it change for the better? absolutely yes!.
LT Holders: Why long term holders are not worried about this ups and downs? because they've been through this before. It's nothing new. They've seen this situation before and it's nothing new to them. The price can be down today but it will go up tomorrow for the story being told has not change a bit, if any, it has been change for the better on the 88E story.
CGT (Capital Gain Tax): We all know what it is, and we don't like the tax man to dip his finger into our hard earned cash. So to do that, we want to reach the 12 months holding period as soon as possible but the journey towards this goal can be a bitch! due to many obstacles ahead of us but I'm going to remind you why that waiting will be worth it in the end...
Waiting time: You can't speed up time and that is just how it is. You sell today to make a small profit or believe you can get back in at a lower SP when it drops lower, well, good on you for doing what ever decision that has lead you up to that point but remember, the moment you bought back in, you've reset that waiting period to zero again and you will also need to pay CGT to the tax man on the little pips of profits you've made and you probably gained a few more stocks on top of that when you spend that extra profits you made buying back into 88E at lower price. That feeling is great right? read further...
Profit here invest else where: So you decided to cash out for now and will come back later on. Once again, good on you if this method of investment are working out for you because not everyone are coming out successful like you think it is. Quite often, even the elite investors are caught out taking their profit from one stocks and put it into another stocks only to realise they've made a loss there. But, does these guys come back to the forum and announce their profits were loss in another stocks? absolutely not.
After 12 months: Had you stick to your original goal of holding for 12 months, you could probably and I repeat could probably sell it then when the SP are higher instead of a few pips here and there and as you've already witness, 88E shares are like hot cakes when Ann are around the corner. They will shoot up so quickly before you could even put through your orders.
Surprise buy out: Laz pointed out again this morning about the ticking of the "Achilles Heels". At this stage, our permeability are way way way better than Eagle Ford Shale, so flow rate IMO it's not going to be an issue and I have full confidence in PB's judgement. They said it's 50/50 chance success? I think they're being very conservative. When the flow rate are established successfully, don't be surprise by June/July next year that we may get bought out by big boys at e.g. $1 per share. So do the math had you held for more than 12 months.
Say you bought at 5c per share costing you $50K
1M shares after buyout = $1M minus capital
your profit to this point is $950K
50% of that 950K = $475K straight into your pocket bypassing the tax man and only need to declare the other $475K.
Tax on that $475K will be maximum 45% so around $213,750.
Total profit: $736,250 CLEAR!!! just on the shares alone.
Imagine those that held more than 1M shares when bought out. So will your little pips here and there profit going to beat the CGT concession after 12 months?
Invest Long and Prosper :- Spock of the USS Enterprise (when he is buying shares)
DYOR All expression here are IMO
88E Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
(20min delay)