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Gold/Mining/Energy : Innomat Solutions Corp (INAT - was Stackpal, STAX) -- Ignore unavailable to you. Want to Upgrade?

To: reg who wrote (544)	11/9/1998 1:38:00 PM
From: Bob Fairchild	Respond to of 580

Reg, their is no risk. I transferred 20,000 shares of Innomat into the RESP at a cost of $0.00 The transfer of the other securities was for the same value. I get the same capital loss whether I disposed of the shares or transferred them. If these shares are ever worth anything the gain will be sheltered inside the RESP. I still make the $2,000 contribution per child but put it in undervalued cyclical large cap equities. I the first week the account is up more than my 4 1/2 year return from Altamira and I'm still getting the $400 cheque from the Gov't at the end of the year. To use a worn out phrase, it's a WIN - WIN situation. I would never buy junk for the RESP. In this case it's free !

To: reg who wrote (544)	11/9/1998 2:07:00 PM
From: Bob Fairchild	Read Replies (2) \| Respond to of 580

Reg, to further re-inforce the point, I did transfer the last of my Eaglecrest shares to the RESP. The 300 shares are worth 14 cents which makes the total value of the transfer $42. For me to get the capital loss on these shares I could have sold them, but the cost of the commission would have been $42 leaving me with nothing. The value of the shares would have been eaten up by the commissions. On the other hand, I transferred the shares to the RESP, I get the capital loss and instead of giving them up for nothing, my kids get them. Because this is considered as a $42 contribution to the RESP, the FEDS will give a 20% matching grant to the RESP so we end up with another $8 ahead of the game. This may be a strategy for you when the rest of your BBS stocks go into the toilet Reg. Bob