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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Charshay who wrote (36923)	3/10/2010 10:40:16 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78741

Late last night when I checked the numbers, it seemed GRVY was trading somewhat close to net current assets. Can't quite remember, could depend on Korean/US$ exchange rate for the large cash component. If it gets down to 2/3 of nca and is profitable, I might go for a few shares. I didn't see unanimously encouraging views of their new game in the very few Amazon reviews. Just to post that I looked, and GRVY not for me now.

To: Charshay who wrote (36923)	3/10/2010 1:34:53 PM
From: Area51	Read Replies (1) \| Respond to of 78741

Did they (GRVY) do a background check on the new CEO <g> ?I'll take a very small chance on it. If you're interested in highly speculative stocks TELT.OB is also interesting. Earned 0.23 last quarter and selling for 1.60. The next earnings report should be interesting, perhaps even interesting in a good way. siliconinvestor.com

To: Charshay who wrote (36923)	9/7/2010 6:09:24 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78741

Just a note to holders of GRVY - --------------------------------- Our status as a passive foreign investment company (“PFIC”) in 2009 and potentially other years could result in adverse U.S. tax consequences for you. In light of the nature of our business activities and our holding of a significant amount of cash, short-term investments, and other passive assets after our initial public offering, we may have been since our initial public offering a PFIC for U.S. federal income tax purposes. In particular, due to the deterioration of the trading price of our ADSs, we believe that we were a PFIC in 2008 and 2009, and there is a significant risk that we will continue to be a PFIC in 2010. If we are a PFIC for any taxable year during which you hold our ADSs or common shares, you could be subject to adverse U.S. federal income tax consequences. You are urged to consult your tax advisors concerning the U.S. federal income tax consequences of holding our ADSs or common shares if we are considered a PFIC in any taxable year. See ITEM 10.E. “TAXATION — U.S. FEDERAL INCOME TAX CONSIDERATIONS — Passive foreign investment companies.” ------------------------- from sec.gov en.wikipedia.org My read of this is that any cap gains are treated as ordinary income + some kind of additional tax form might have to be filled if GRVY is sold in the same year it is bought. However, if the stock is held over calendar year, the taxes have to be paid each calendar year of holding. Not sure how they are computed. Not sure about the holdings in tax deferred accounts. I am not an accountant and definitely not a tax accountant. Consult your tax accountant for exact information. I wonder how many Chinese small caps are also PFICs without even telling US investors they are such. (I have no clue what rules apply to multi tier ownership structures common in some Chinese small caps.). I also wonder if PFIC rules apply to stocks other foreign holding companies. Apparently banks and certain other companies (insurance? REITs?) are exempt from PFIC designation and rules, however, exact rules are unclear. :/ Anything that looks like foreign mutual fund seems to carry a PFIC risk, but apparently some "does not look like PFIC" companies are unfortunately PFICs. Not clear how much of this is policed and enforced by IRS either.