I have the same problem you do. I have already declared substantial capital gains for the year, and now have substantial unrealized losses.
I would guess many SEG holders are in the same position, so may be selling through the end of the year for tax reasons. Both your scenarios are reasonable, although I wonder if an upturn is in the works for 1997, even a brief one.
Assuming confidence in the long term future of SEG, and the 30 day window of the wash rule, I see these options:
1. Sell now and buy back in 31 days.
2. Wait and see if the price goes up before Dec. 31 before selling.
3. Go deeper into margin and double position on a dip before end of Nov, and sell before EOY.
I'm beginning to think option 2 is the way to go. I don't think the investment community could look at DDs much worse than they are these days, so it should recover somewhat. But the future of the sector is not terribley bright for all players. I'm hoping SEG will do better.
I always thought that they were smart to invest in Dragon, and once folks had easier input methods like voice recognition, they would need bigger drives to store all the crap they would put on their computers.
Let us know which way you end up going, jas. |
