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Microcap & Penny Stocks : ABTX - Agribiotech -- Ignore unavailable to you. Want to Upgrade?

To: ARCHIE P. who wrote (1383)	12/19/1997 9:52:00 AM
From: John S. Baker	Read Replies (1) \| Respond to of 8359

I do believe that LUCKY referred to people selling in Jan 98 in order to take their profits in a future quarter and a future year. Thus they would not need to pay taxes on them until they declared their Quarterlies in April 98 -- thus deferring tax payments by some 3 months. IMHO, that's letting the tail wag the dog. I don't like the idea of making investment decisions based primarily upon tax condiderations. Having said that, when I was feeling uncomfortable about my humongous gains in ABTX, which threatened to unbalance my portfolio, I considered selling my original stake and letting the "house money" ride. But that would have triggered a short term capital gain in 1997. Instead, I elected to buy some Puts -- farthest out, lowest strike price available -- which cost me less than the tax would have been had I sold. It is my intention ... nay, my fervent hope ... that these options will expire worthless. But, until July of 1998, I have at risk only that part of each ABTX share which is worth more than 7 1/2 dollars. Or, viewed another way, the first 7 1/2 of each ABTX share is locked in value until July 98, so it puts the risk part of my portfolio back into better balance. JSb.