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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Tommaso who wrote (73189)9/12/2000 6:16:44 PM
From: isopatch  Read Replies (3) of 95453
 
How to play HGT? 1st, like your numbers work. Thanks.

But, I'd aver that a longer term hold of HGT might be more rewarding.

Though the large monthly distributions are tax deferred via depletion and depreciation deductions, these offsets reduce your cost basis. So, you are subject to recapture of that tax liability when you sell the stock.

With that in mind, I'd rather keep HGT LT and get the favorable tax treatment on cap gains when I take them to compensate for the tax bite from recapture. In the meantime, I get a great TAX DODGE on the income I receive.

For maximum gains, I'd rather trade sm cap NG E&Ps (around core positions) intermediate term. Those E&Ps are pure cap gains vehicles that have a lot price appreciation in them.

JMVHO

Isopatch
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