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Hi Sheila, Sure is a difference in opinions on whether to trade or buy and hold... I am pretty much a novice investor, but have been trying to learn from the folks here on the IOM thread. I have bought and held, but averaged down on major dips. Luckily I had some other winners (BAC, KLAC, and MOT) that freed up cash when IOM was down in the teens and all of that went into IOM. My avg price is about $20 now and I am looking at a nice profit today, but I also look at the tax bite from IRS should I sell now. Under the old tax law, I would be close to having a long term capital gain, but now I will have to hold for at least another 6 to 8 months... but by doing so the bite is only 20% instead of 28% or higher depending on other income changes. If you trade the stock then all gains are taxed as regular income at what ever rate you are taxed at... 28%, 33% or higher. I do have one factor which could help in that about half of my IOM is in an IRA account which is tax deferred. So I am considering doing some trading in that account, but want to wait until the next quarter results are announced. In that I am close to retirement, I have to watch not getting too involved in trying to time the market... as there are so many external factors at play right now. Iraq, Asia, Japan, deflation, and Mr. Greenspan and who know what else is around the corner. I am very optimistic about IOM and the only other stock I hold at the time, RAIN, which has about that same potential as IOM if not better in the near term. I have thought of trading out of IOM and buying more Rainforest Cafe in my IRA as it is protected from taxes at least for the next 10 years or so. So, I guess there are as many stategies out there as there are investors. Any comments from the rest of the thread are welcome. Long and Holding... Think Clik! Mel |
