Let's Make REAL MONEY (Big, long-term cap. gains) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Let's Make REAL MONEY (Big, long-term cap. gains)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Don S.Boller who wrote (50)	12/21/1997 7:26:00 PM
From: david james	of 135

A question on capital gains.... There are two ways in which one gains by holding an appreciating stock long term. One is the straightforward reduction in taxes. The second is that it allows you to keep ones capital in the market rather than taking out more than a third of the profits to hand to Uncle Sam. Together this suggest a rather interesting equation as to how far a stock is anticipated to drop to be worth selling. For example, if you owned a stock that appreciated on average 40% per year, and had owned it for 8 months, and were aware of news that was going to lead it to a short term drop, how large of a drop would make it worth selling? I believe the answer is larger than most 'traders' expect. Anyone, know where I can find a discussion of this issue? And if I may plug my favorite, based on long term growth, P/E relative to the industry and strong management, my favorite company is American Eco (ECGOF) and it just had its short term drop. ;-).. Although not quite in the theme of this thread, the company has grown earnings the last 5 years at an average rate of 83%, has a P/E under 10, and is expected to shortly announce 4th quarter earnings showing growth of at least 85% over 4th quarter 96. Details are on the "Highlights on SI" in Mark Johnson's newsletter, just published techstocks.com David

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next