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Technology Stocks : Visual Data (VDAT) -- Ignore unavailable to you. Want to Upgrade?

To: nord who wrote (64)	1/21/1999 10:51:00 AM
From: Fundamentls	Read Replies (1) \| Respond to of 405

You may be right, but I'm not sure. By my calculation the warrants should be callable on Feb. 1 assuming the stock price holds up. They have to give 30 days notice which takes us to March 3. As one who holds both stock and warrants, my take on the best course of action is different. I still think the stock could pop to 25-30 (or more) by March 3, and if so, my ROI will be a lot higher on the warrants than on the stock. So I'm going to wait until much closer to March 3. Then most likely, if I needed the cash to cover the conversion, I'd just sell the warrants and invest the proceeds in more VDAT. What I'm trying to find out, and now have my accountant working on, is whether I could retain more of the gain in my long-term account (I've held the warrants more than 12 months) by ponying up the cash than by following this strategy. Anybody know how capital gains are taxed when you bought the warrant more than 12 months before you convert it, and then sell it within 12 months? You put money in at two different points and your basis is clearly the sum of the purchase price ($0.10 in my case) and the exercise price ($6.00) less the call price ($0.05), but how much of the final gain is short term vs. long term?