I am a long term shareholder, hoyasaxa, and it is just not worth it for me to sell any shares. For me to sell now to lock in some gains, SUNW would REALLY have to fall to make it worth my while since I would want to buy back in. If you, too, are thinking of selling with the intent of buying back at a low price, consider this:
You want to sell 100 shares at a limit price of $130. These shares were purchased over a year ago at, say, 40. Due to the split, your cost basis is now $20.
$13,000 received for sale of 100 shares
$11,000 = capital gain
Federal tax: $2,200
My state tax: $616
Total remaining after taxes: $10,184
$101 5/8 =Price SUNW must drop down to just to buy the same 100 shares
There are people on this thread, myself included, whose cost basis is w-a-y lower than $20. This means our tax liability would be greater than in my example and that SUNW would have to drop even lower than 101 5/8 to just come out even.
I would only recommend long termers sell some of their shares now if they want the money to invest in something totally new or have the money earmarked for some big expense (e.g. house, tuition) and are nervous.
Lynn |
