Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: double-plus-good who wrote (47894)	7/13/1999 3:47:00 PM
From: Captain James T. Kirk	Read Replies (1) \| Respond to of 95453

MRL ALERT !!! Yahoo thread reports the 700 is ready and tendered. Volume jump last 2 hrs. !! Still cheap, news should be out after the bell !!

To: double-plus-good who wrote (47894)	7/13/1999 4:00:00 PM
From: ChanceIs	Respond to of 95453

++good - I concur with your analysis of the trusts in general. In the case of Torch Energy Royalty Trust (TRU), the market price (at least several days ago) was below book, and book was based upon downwards adjusted (impaired) gas prices as of 12/31/98. With today's NG prices there appears to be some profit in TRU. There is an extra little kicker which I am enjoying. If you were like me you had some losses when the Russian ruble collapsed last September. Uncle Sam in his generosity lets me write that off at $3K per annum. However I am depleting TRU at $1/share each year. If I sell TRU short term, then my depletion comes right back in as a capital gain - a wash. Because I have large short term losses, I am setting this depletion against them and effectively beating the $3K annual write off barrier. As long as TRU moves upwards or even sideways, this is working in my favor. Given how badly TRU was beat up with the December hydrocarbon crash, I think that it will be in this mode for a long time. The other side of the coin is that I want to hold a number of my OSX stocks for long term gains. Correct me if I am wrong, but I think that part of those long term gains would be absorbed against my short term losses if any remained. Thus I would have done the hard work of holding long term but would not receive the long term tax benefit. (BTW - It looks as if the Senate will not go along with the house in reducing the capital gains tax.) Fundamentally I am holding TRU as the conservative or damping position in my portfolio because I got in when it was so far beaten down. I am not sure that I would buy more today. The extra tax angles are gravy.