Ji JAWSY,hope all is well!there are many reasons for selling at...

Ji JAWSY,

hope all is well!

there are many reasons for selling at 2.8/2.9.

The main two are desperation and taxation.

Desperation is simply no other alternative to getting your hands on cash.

Taxation the aim of reducing a potential tax liability.

Under the SIS Act a self employed person (idealy in a corporate structure) can make a contribution to their super fund by selling shares to the fund.

Although they are "related" parties (seller/buyer realted) as long as it is done at market value and preferably on market then there is no issue.

Hubby and wife via their company can contribute and claim a deduction of $50,000 each (3,333,333 shares @ 3.0c) or up to $150,000 each post tax cont. (9,999,999 shares @3.0c) ) and all can be done on market.

Adding to this is tax selling on and off market to take advantage of losses as a result of a low shares price. This can be done to an unrelated party or a related party.

In relation to transactions to related parties as long as there is a commercial reason for the transaction (other that gaining a tax advantage)then the ATO will not deem it to contrevene Part 1V A of the tax act.

(the above is not advide DYOR)

At these low prices and end financial year one would assume and expect larger holders to do some moving around.

I do agree with your comments about un releated sellers offloading stock at these levels.

We all have been in far too long to bail at 3.0c

Good luck.

Cheers

ps. NB1, I didnt see your post. nice to hear from you. Lost your tel number. drop a line to me [email protected]