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Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO)
GRNO 0.00Dec 3 4:00 PM EST
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To: Hawkmoon who wrote (4201)4/20/1997 6:03:00 PM
From: Norman H. Hostetler   of 13091
 
"Wash Sale" rules: I believe these only apply to selling a stock at a loss (hence a tax write-off) and then rebuying to try to establish a lower basis. By contrast, the government is always happy to have you take a profit and pay the resulting taxes. And you can buy the lot right back the next day, if you want to. One consequence: When you calculate the price at which you want to buy a stock back after a prospective profitable sale, you want to be sure to allow for the taxes you will have to pay--that figure (along with allowance for brokerage costs) establishes your break-even point. (I'm assuming here that you're a long-term holder, and are normally anticipating the capital gains tax only in the distant future. I'm sure that short-term traders like TA Mark already allow for these costs in making buy-sell decisions.) Of course, if you bought at $2 and were fortunate enough to have sold at $10, you'd be very happy to pay your taxes (unless your effective costs and taxes exceed 50%) and buy back at six. Of course, you have to be either exceedingly psychic or exceedingly lucky to pull off this kind of combo consistently. In my experience, more often than not, when I sell a stock, the price goes up; when I buy a stock, the price goes down (short-term moves).

Also, not all of us announce our buying and selling plans. But Brenda and I had to sell some of our holdings earlier in order to get into the partnership, and we've nearly succeeded in buying all those back at these lower prices. So there has been at least a little price support going on here.

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