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Biotech / Medical : Agouron Pharmaceuticals (AGPH) -- Ignore unavailable to you. Want to Upgrade?

To: Izzy who wrote (3439)	12/27/1997 2:12:00 PM
From: Zirdu	Read Replies (2) \| Respond to of 6136

If you sell for a $30,000 loss Monday, you can (1) offest these losses against any capital gains you have realized this year, from sales of stock, property, or capital gain distributions from mutual funds, and (2) if you still have losses left over, you can use up to $3,000 of the loss to offset ordinary income (i.e. like wages, etc.), and (3) if you still have losses left over, you can carry them over to next year and go through these three steps again. So, for example, if you are in a high tax bracket, and have no other capital gains, you might think of selling enough AGPH to realize a $3,000 loss, and keep the rest. But, if I were you, I would hold now, since I suspect that a lot of investors are now doing exactly this, and thereby artifically depressing the price of AGPH stock. Tax loss selling in the biotechs this year has been brutal, from what I can tell. I would expect a rebound of stock price beginning 1/2/98. RR Also, if you take your losses this year, and then buy back in next year, (and let's assume you get lucky and buy back in for the same price), you have lowered your tax basis in the stock (from which future capital gains are figured,) In other words, holding a $30,000 loss going into next year will allow you to make up to $30,000 appreciation on the stock (relative to where you are now), without paying any capital gains taxes. RR