if I want to keep PALM and not COMS, I can buy COMS now, get the dividend PALM shares, sell COMS at a loss (nice tax deduction) and keep PALM long term...
assuming that I do not mind keeping COMS for 6 or 7 months, the only question is, will the drop in COMS be <, =, or > than the cost to buy PALM in the open market taking into account the loss on selling COMS for tax reasons...
meaning, if I lose 20K selling COMS after I receive 1000 PALM shares, and if I take into account the tax benefits, and assume that I am in the 36% tax bracket... then my actual cost for the 1000 PALM shares is only $12,800... and if I have more gains than losses (I surely would hope so), then I've offset a good chunk of gains, and got to get PALM... I also assumed that it will be a 1:1 dividend...
ok then, I don't think COMS will drop 20 points... after distributing PALM... does anyone think otherwise...?
oh, why am I telling you all all this...? I must like you people...
best regards
amein |
