amol7, The downside of selling LOMOB before April 2016, is the...

amol7,

The downside of selling LOMOB before April 2016, is the tax implications (unless the shares are sold by a tax exempt superannuation fund (SMSF) which is fully in pension phase).

Selling LOMOB before April 2016 will mean that you will not be entitled to the 50% (1/3rd for SMSF) Capital Gains Tax discount ... in other words you will pay full (as opposed to half) your income tax rate on the capital gain (up to 49% income tax including levies ... as opposed to up to 24.5% income tax) ... due to the fact that LOMOB have been held for a period of less than 12 months. Quite significant ... as it means "up to" 24.5% extra income tax may be payable.

If you do not believe LOM share price will appreciate or LOMOB price will retrace, then you may "bite the bullet" sell knowing that you will be paying much more in income tax (reducing your net after tax profit).

If you are long term believer in LOM and it's potential and bot of a risk taker, you should exercise your LOMOB (beg, steal or borrow ... even from friends if necessary) and exercise your LOMOB, hold the subsequently issued LOM for 12 months, be entitled to the 50% Capital Gains tax discount and be save yourself 24.5% of income tax and also potentially reap the benefits of any further share appreciation in value during the last 12 months.

The tax implications may be significant and must be considered when deciding what to do and which option will achieve the best result.

Well done all holders as we patiently wait for Monday.

Zippy1