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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: Kayaker who wrote (9268)10/31/1999 7:02:00 AM
From: uel_Dave  Respond to of 54805
 
<<British Columbia -- highest taxed jurisdiction in North America.>> Bob, I thought that Ontario was higher our provincial tax is 8% with the same 7% for the federal government. The other punitive tax problem as you know that I have been trying to deal with is when Canadians have more than 20% foreign content in their retirement plan, then it is taxed at 1% per month of the excess booked value. I have four RRSP accounts with one of them at 100% Q; however I almost pulled the trigger and sold all the Q in the 4 accounts to avoid the tax for October and to purchase JDS during the last week, which is Canadian content and to follow your model of 80% JDU and 20% Q leaps. Q has been one of my best investments and I really wanted to ride out the next earnings report. It was interesting to read some of discussion of Frank trying to time Q, because I felt I was doing the same for a different reason, taxes.

On another topic, I thought that JDSU was overvalued and after visiting with a friend yesterday that seems to understand the model of JDS much better than I do presently has changed my mind. Since JDSU is growing at 100% per year, its stock price will be approximately $800 to $1600 US in less than 5 years. Since JDS is in the hottest sector , fiber optics, they can demand a higher P/E. I will be making some adjustments over the next few weeks or months to reduce the amount of punitive tax in my RRSP, but to still take advantage of Q ( still have lots outside the RRSP ) by buying Q leaps in the RRSP will help, however timing is everything, stay tune, I will let you know and others on this change.

In summary, now I know why my brother left Canada 20 years ago to work in Santa Clara to reduce his tax and create wealth faster. Bob, the good news is the Federal Government is looking at raising the foreign content rule to 30%. In the meantime, it is NT , JDU (JDS CDN ), and Q & Q leaps over the next five years.

BTW, I was not taxed on my membership to SI :-)

David