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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (48005)	4/6/2002 7:51:29 PM
From: shoreco	Respond to of 99280

Zeev Hed, That is further proof that we could never return to the euphoria of the late 90's and anyone who thinks we can is still living in a dreamworld. Now I'm not saying we can't rally, nor am I saying the market should crash, but the times have changed. The problem now is there's still a lot of money being poured into pension funds and 401k's and that money has been pouring into the small caps and the Dow30 to a point where they're getting over valued. This is one reason why "Gold" will probably continue it's steady climb as another way to diversify. EOM Shoreco PS I just did some DD today on which funds were holding BMY,TYC,ENE,etc.etc. just to see where the main exposure is and I found that MSFT,INTC,C,GE,are way over loaded in these funds and if the day ever comes when MrSoftie does a doosie, MrMarkets gonna do a big doodie...

To: Zeev Hed who wrote (48005)	4/7/2002 9:14:34 AM
From: Logain Ablar	Read Replies (3) \| Respond to of 99280

Zeev: It doesn't work that way. In the example you cited with JDSU the write off is unrealized and it doesn't shelter future income from taxes. Its only if they sell the SDL stock and realize the loss that JDSU would be able to have a realized capital loss. Capital losses can only be used to offset capital gains. Corporations do not get the 3k a year individuals have. Now for reporting purposes (GAAP accounting) there may be some deferred tax benefit but it would depend on the circumstances and be small in realtion to the total write off (i.e. much less than the 35% benefit one would expect). Now one point is this whole area is a great tax planning / strategy area in developing ways for companies to actually realize the benefit to shelter future income. Complexity is the name of the game. Tim