MRV Communications (MRVC) opinions? Message Board

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Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

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Aug 15 5:00 PM EST

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To: Greg h2o who wrote (11158)	11/3/1998 3:32:00 PM
From: Robert G. Harrell	Read Replies (1) of 42804

Greg, The part you are not taking into consideration--tax consequences--is the key. With Steve's approach, there is another 28% or 32% or whatever involved. If he has taxable gains in other transactions and he can cancel them with his MRVC loss, he is way ahead under his plan versus yours. I'm no accountant, as I've said many times on this board, but last year I was "blessed" with a real tax problem which forced me to grapple with the capital gains issue. In a sense, I solved my problem with the reverse of what Steve is proposing. My wife had stock in her grandfather's business. We never saw the certificates or had any basis of what they were worth. The family member who ran the company kept everything very close to his vest even paying the intangible taxes on our stock so we had no idea what it was worth. Then they sold out to First American Financial and we got actual stock which doubled in the following year. Thinking it was over valued, we sold it all soon after the restrictions were lifted (dumb,dumb,dumb--left $200,000 on the table!!! ) No one could tell us what our tax basis was except the company accountant who was very slow in getting back to me so I made a best guess based on all the transaction documents from the sale and made estimated tax payments accordingly. When the accountant finally got back to me, it turned out that out cost basis was virtually zero and I panicked taking every paper loss I had to cancel some of the gain. Then of course, I realized that I couldn't use the short term losses to cancel the long term gain. Fortunately I had a double in THQI for the year so I sold it and took the gain in 1997 and actually bought it back in 98 for less.(It's up 75% this year <ggg>.) I was able to start all over with a higher basis and save paying 28% minimum on the 97 gain which I had cancelled with all the losses I had taken when I panicked. Kind of the reverse of what Steve is going to do. Too wordy as usual but maybe this will help someone. Bob

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