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.

Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Eddie Kim who wrote (3609)	8/19/2000 12:52:51 PM
From: SIer formerly known as Joe B.	Respond to of 3645

Re> it appears that institutions are accumulating NMGC. What do you base that on? If anyone was accumulating the price would be higher and a majority of the tax selling is most likely still to come.

To: Eddie Kim who wrote (3609)	8/19/2000 5:12:03 PM
From: Mad2	Respond to of 3645

MM (read brokerages that make a market in the stock), have to push the price down when a large amount of stock needs be moved.......law of supply and demand. What would you do? Buy a boat load at a higher price? Price gets pushed down until enough buyers show up to absorb the shares, period. Might be a speculator, fund or brokerage house putting out some capital to buy and hold inventory. You misunderstand......not manipulation.....oversupply means lower price until takers are found. My point with regard to NMGC is if nothing appears on the horizon to indicate a real change in their fortunes in the next 3-6 months.......then some holders who are sitting on large losses will have a incentive to monitize their loss. This increases the supply of available stock......even accumulators of a broken issue won't step in, why.....because they sit back and let the stock find its own level and then buy. Makes so much more sense to buy lower In many cases if they still like the stock they can come back to it in 31 days or longer. In fact that's the whole of the strategy in finding tax loss canidates. Look at the 2yr charts on these. What do you think happened. some one unloaded (too much supply) and a short time later they bounced.....in some cases the bounce resulted from temporary excess demand. PDX nov/Dec 99 PRST Nov/Dec 98 PFAB Nov/Dec 99 These are price swings of 60-100% from the lows of their Nov/Dec sell offs that bounced back within 30 days. Many more examples exist. My point, I'll be back to watch in Nov/Dec and decide then what to do. Object is buy low and sell high! m2

To: Eddie Kim who wrote (3609)	8/19/2000 5:27:24 PM
From: Mad2	Respond to of 3645

Plus, its not like the IRS allows you to claim all your losses as a tax credit. It's actually a very small amount. Eddie heres how it works (fundie or individual) Say you have NMGC form the 12-25 level, a long term holder who listened to mgmt (ha ha) and you have a chance to get out at 2.5-4 (who knows where it'll be come Nov). Out of your orignal investment your paper loss is anywhere from 66% to 90% and the market value is 33% to 10% of the orignal price. Now assuming you have gains to offset (if not then your not long for this world) each dollar of loss could be view as offsetting one dollar of gain. If we assume most well healed are in the 33% -39% last dollar tax bracket the taxes saved as a result of selling are in the range of .66X.33 for 22% of the orignal up to .90X.39 35% of the orignal investment. In the former case a guy sell NMGC at 4, and gets 22% of 12 or 2.64 dollars off his tax return. In the latter a guy sells at 2.5 and gets 35% of 25 or 8.75 per share of sold off his taxes. This is dollars and sense tax strategy and why buying deeply broken stocks leading into the 4th qtr is dangerous. Only buy stocks in this situation that have clearly reversed their fortunes. On the other hand they can bounce very nicely going into January m2