the week that was, page-10

"Also the 12 month rule (pay only on half of the capital gain) also needs to be considered"

lol! Too right it does - depending on ones financial position! Selling now at 14 for me is like selling at 10 next year because of the 12 month rule. This means I can ride the trend and not be shaken!

14 cents this year is a lot less than 14 cents after 12 months - what's the problem in waiting?

I only have a million - but sell now for a $100K profit and pay $50K tax? I do nothing and if still 14 cents in another 6 - 8 months I will pick up an extra $25K for doing nothing.

And hey what if it goes to 20 - 30 cent range if they meet forecasts and then some? Out now at 14 cents for a quick $50K and it goes to 30 cents in 12 - 24 months - profit is then $265,000 - tax rate 25% - keep nearly $200K ;-)

If it falls to 10 cents in a year - and sell at 10 cents - $65K pre tax - after tax I keep $48,750 - thats about the same as selling for 14 cents now!

Makes more sense for me to hold this stock where the outlook is good. Might not be this way for everyone - depends on your tax situation so see a professional for advice.