Mr. Reinhard,
You stated...." WINR is poorly performing since February". I believe what you meant to say was...WINR stock price is poorly performing since February. I don't see how you can say that a company that was profitable in its first operational quarter, and has promised increased earnings and revenues in its second operational quarter is "poorly performing"!
You also stated...." I'm holding and even added shares in the last couple of months."....I believe this statement speaks volumes as to how you really feel about the company despite the fact that you have posted mostly negative sentiments the last "few months".
Further you stated...."Profits from a stock sale in Germany are completely tax free if you were holding for one year (LIFO principle!)."....Which indicates to me that from a tax stand point your point of interest is one year out from your most recent purchase. Meaning you favor short-term devaluation to attain greater long-term appreciation.***
Mr. Reinhard, being a native German, you probably have a much better understanding than most of us yanks as to how WINR and their current ventures will be accepted in the Euro market place, and by your own admission you continue to buy on weakness with no expectation of selling for more than a year. Why?
You say also....." Investing into a BB stock means for me that I expect that the stock will increase at least tenfold, not in ten years, but within 1 to 2 years.".....I can only interpret this to mean, that since you are a current and active buyer, that this is an admission on your part that you fully expect WINR to increase "tenfold" "within 1 or 2 years"
You also stated...." I still hope that a portion of these expectations will fulfill".....Mr. Reinhard, as skeptical and conservative as you seem to be, you don't strike me as the kind of investor that is inclined to pour your money into any venture on "hope".
Mr. Reinhard don't mistake this post as a rebuke of your skeptical and negative posts. I for one appreciate them as they serve to keep those of us who have our heads in the clouds of unrealistic expectations to keep the ground in view. It also doesn't hurt those of us who are also long-term investors to pick up more cheap shares at these prices as you are so astutely doing. Thank you and as always.....
Best Wishes,
Swedelo
***LIFO & FIFO: For those of you that don't understand these terms I will attempt to define. In Germany (I believe this is where Mr. Reinhard is from) stocks are taxed on a LIFO basis. This means Last In First Out. Under this rule, when you sell a stock, the most recent block of a companies stock that you purchased is what is considered sold. If it is held less than one year it is taxed at regular income tax rate (Mr. reinhard please correct me on the rate here if I am wrong) which is generally quite high in Europe. So, if for instance, anyone in Germany who bought say 100K shares more than 12 months ago but has added say 50K this month, If that person wanted to sell the first 50K shares would be taxable at regular income tax rates. The last 100K would be tax free. Is this not true Mr. Reinhard?
In the U.S. the IRS applies what is known as FIFO for capital gains tax purposes. That is First In First Out. This means that if I bought 100K shares more than 12 months ago, and added 50K shares just recently. When I sell the FIRST 100K shares I bought are considered sold at the long-term capital gains rate of 20%, and then IF I chose too I can sell the other 50K but I must pay regular income tax on these shares. Depending on your federal tax rate this could be anywhere from 15% up to 42% (mine) plus state taxes (7%) in my case.
I hope this clears up the dichotomy presented by the different tax accounting principles and trading practices they may percepitate. |
