You make no accounting for the CGT that would have been inured...

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madformetal

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06/12/17

12:59

Post #: 29417510
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Originally posted by picksel ↑

Let's look at the weekly chart then.
The "new" SAS was born in May 2016, so let's start the Fibonacci Study there and take it to the first High. 2c to 12c - a "five-bagger" for the astute early investor. Regardless whether one recognised the common "blow-off" pullback or not, even at 10c the position had grown in value.
Technical traders became involved (again) when the depth of the pullback was known. That presented an opportunity to run the Fibonacci or any other extension tool over the swing and take a guess at the potential upside. Another steep leg-up lasted only about 6 weeks before the next blow-off resulted in a period of consolidation, followed by six months of decline.

View attachment 866450

So, a buyer, who entered at 2c and did nothing, was aat some stage sitting on a 14-fold profit, but had the net worth cut in half with the prospect of more downside.
Even if the optimists were right and SAS would soon soar back past 30c, the trader who sold in the 20's can buy twice as many shares back at the same price for twice the profit that the Buyer-Holder can expect.

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You make no accounting for the CGT that would have been inured assuming you have a job and pay tax
if you pay tax at the top marginal rate and lets say you sold at 24c as a pull back started,
Entry 2 cents exit 24c Tax paid 100% capital gains. You would be only slightly better of than you would have been by holding for the full 12 months and looking for a exit point latter
IMHO

SAS Price at posting: 15.5¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

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You make no accounting for the CGT that would have been inured...

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