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There's no special filing rule you get taxed not as capital gains but as ordinary income and you have to hope you make more after deducting your trading fees and taxes than you would have if you sold after holding for a year. It's the bird in the hand scenario.
Then what in the PR or that was absent from the PR made you decide that the price was going to tank further even though we're at least one day closer to knowing exactly what the drills found? And if it was based on the PR, then how are you quantifying that with TA?
lol, it's interesting that you make assumptions about the people on here on the basis of nothing more than your own arrogance about how much more well informed and astute you are then everyone else. I've traded my position in KATX both up and down and have many more shares than my original position with the same initial investment, thereby reducing my cost basis. I'll continue to do so as the opportunities present themselves. The point to my post had nothing to do with whether or not this pop was valid or based on "smoke and mirrors" as you and tradersrule allege, it was merely my observation based on experience of what usually happens and with KATX in particular. I don't fault anyone that managed to buy at .105 yesterday and flipped for a 25% profit today, as profit is profit no matter how you get it.
I'm not saying this is the case with KATX, but I really don't care if a company moves up or down on hope, rumors, or actual news, as long as it moves and presents an opportunity to make money based on the news, either by adding to my position or by keeping my position and banking profits to use for other things.
I don't think the pullback that has occurred this morning is necessarily surprising since it has pretty much happened every time KATX went up. I think we'll see some more buying in the afternoon and the pps go up to the .125 to .13 range and close somewhere in there. Even with great news stocks don't go up in a straight line even for a day, there's almost always a pullback at some point from the highs. I think the biggest news as far as the MM's holding the price is not the free trading shares but the even more imminent news about drilliing results and other news which is leaving them even less time to "work" the price to their advantage.
I tend to agree along with the fact that making them restricted for 6 months would necessarily lead to further dilution to have some freely trading shares so as to establish a market price for the stock. Remember any dilution or decrease in share price causes the BOD to take a hit on their shares as well and they stand to lose a lot more than us based on their holdings. Heck, if the initial price of the stock is $1 or more I might sell a good portion of my shares, especially with the fact that tax rates are going up next year. I feel bad for those people who have bought shares of BVIG recently so they could have some freely trading shares and not be completely restricted by their dividend shares. In hindsight those were unnecessary purchases.
So basically you were wrong when you said it should have been a green day yesterday and that you didn't see it trending down much more since each day brought us closer to drilling results. Or the charts were wrong and not you and now each day doesn't bring us closer to drilling results? I can't knock you for trading and flipping so far as I've done some of that myself, but you make absolutely no sense when you try to play both sides of the same argument at the same time, hence your credibility suffers because of it.
Don't you ever get whiplash from changing directions so often and so suddenly? Two days ago you were feeling good about getting in at .12 and saw nothing but green for the first part of this week. Now you're out with at best a minimal profit and doom and gloom. I'm assuming if it goes back to .12 or under you'll turn back into Dr. Jekyll again.
The way they've run this up and down the past few days it's been a daytraders paradise, selling in the morning at the high and buying back in when they run it down later in the day, then selling the next morning at the high etc.
I'm not sure that's even possible but I vote for that plan anyway.
As long as the news hasn't happened yet then it's still pending by definition. I'm thinking as soon as the company has complete news to release they will. I'd rather they release accurate information later than semi-accurate information sooner. Besides, if you truly believe KATX/KATG is a great investment the longer it stays in the .12's is a gift and a golden opportunity to make more money down the road by loading up now.
I'm as impatient as the next person, especially when it involves my money, but people complaining about things doesn't make them go any faster. I'm not directing that at you Leafs007, but just in general.
I think now is a pretty good re-entry point since every time it's been down around .12 it's bounced and never really goes below it. Also, as recently as yesterday it was up to .14 so that would be almost a 20% profit pretty quickly if you were looking to flip it. However, with the pending news there is probably more upside and trying to wait and catch it at the absolute bottom is not a good strategy at this point because you may end up chasing it on the way up.
lol, yeah because if CNBC says it you can take it to the bank as fact.
I'm sure it's just a big coincidence and they're not actually conspiring to manipulate the share price on a stock......right!
HDSN was sitting at .154 all morning and now they're at .125. Watching the MM's on the ask on L2 is like watching the Tour de France, one sits as the low man on the ask for a while then someone else jumps below them for a while and they run out of shares or get tired and so on. It will be much more fun watching them do the same thing but continually jumping the ask higher.
HDSN now at .134 on the ask, maybe he got tired of being at the front of the pack all day.
I almost feel like they're making me buy shares at this point, I don't want to but I have to. If it just gets back to the HOD I'd be up over 20% on what I bought today. Ridiculous
NITE keeps lowering the bid and HDSN keeps lowering the ask. NITE probably can't believe they're getting shares at this price. I predict they'll start walking it back up again in the next hour or so.
Interesting, I put a buy in at .14 which was the ask and it filled at .13.
That's probbly a good idea just to be safe. Thanks
With distrust of management like you apparently now have, has your stock pitch for KATX changed at all or do you still believe in its long term potential?
That's my point, although I didn't do a good job of expressing it. It's an easy calculation when the stock distribution is in the same company, it's a whole lot more complicated when it's in a separate entity altogether. I'll need to go back to some of my accounting texts and try to dig it up for clarification, as much as I hate to revisit them. In any case, we've got at least 6 months to figure it out and I'm just hoping I have to figure how much taxes I'll need to pay on the gain.
Or maybe he picked the perfect time so if things turn out great he won't have to be here to hear it.
It does but the somewhat confusing thing is most stock distributions are in the same company so if they say do a 1 for 2 distribution of shares that are valued at $10 on the date of record of the distribution, the effective price of all the shares prior to the distribution is that figure and for every $20 in shares you have you get an additional share, which increases the float by 33% and sets the cost basis in your new shares at the $10 price less 33% or $6.67. The big question is how does it apply when the distribution is in a different company. My assumption is that in this case it would be at whatever the share price was set on the date of record, which would probably be the $0.70/share they are using.
You don't think its in the realm of possibility that up until the end of the day they were still hoping (anticipating) being able to start the drilling and when it became clear it wouldn't happen they decided to wait until the next day to break the news instead of letting the PR sit there overnight?
That's true and the only tricky thing when you sell your KATG shares in the future is determining your cost basis in the shares. My educated guess is that if the declared cost basis is .70 then that should be your cost basis when you go to sell, any price above would cause taxes on the gain, any price below would show a loss on the sale for tax purposes. I'm not 100% sure but based on my research and experience with stock distributions when you receive shares in the same company that's how it works.
Nice close all things considered. I guess the 15,000 buy at .15 right before the close shows a little more conviction.
I don't understand why if its so painful to be here that you're glad you won't be here for 2 weeks, you'd keep coming back?
Thanks, you're right even with the flipping I never sold more than 50% of what I owned and made sure I was in for the KATG distribution and don't even want to think about not being in right now. I've seen how this can jump quickly. One thing some people forget is that even with pinks once a stock shows a breakout people will jump in to ride the break up which will bring more volume and more upside, especially right now when there's not many stocks making positive moves. Even TA traders will jump in when they see a breakout above the moving averages with some volume. A move up with volume breeds more volume which should cause more upside, especially on news, it feeds on itself.
Great post, as someone with limited investable resources I've flipped some shares while keeping a core position and been able to double my holdings while keeping my initial investment. Of course I ran the risk of missing a large run up but it's just as easy to average up into a run as it is to average down when a stock price is declining. Since I've got few posts here I'm sure I run the risk of being labeled a basher since I'm long, just not blindly irrationally long.
Maybe I'm different but I make it a policy to not buy stock in any company that I personally feel the people calling the shots don't know what they're doing or have no business sense, since that seems to be a receipe for disaster. But to each his own I guess.
If the CEO is acting in an inexecusable manner in your opinion why would you even consider buying stock in that company, especially a smaller company listed on the pinks? That doesn't make sense to me.
Oh let's see, working on financing plan contingencies, dealing with uplisting issues, working on future growth and drilling plans, looking into pursuing JV's with mining companies, etc. Of course if your secretary handles these kinds of issues in whatever business you're involved in them I'm sure the CEO also watches the janitor work to make sure everything is clean.
Any competent manager/executive does the things that noone else in the company can do which are usually more long term and strategic and allows his employees to do their jobs without baby sitting them. If the success of the drill program is dependent on Ken being on site then what does he need to pay the geologists for?
I'm not sure why it would be important for Ken to be on the drill site or a negative if he hasn't been there yet. As the CEO of the company I'd prefer he spend his time dealing with issues that noone else in the company can instead of watching over the shoulder of the experts that have been hired do their jobs.
Yeah, there an assay, It's so weak that it's not worth touting sixteen...do i hear sixteen five? sixteen...sixteen five......And on, and on,it will be to twelve tommorow.
You're uncannily accurate with your guesses....not
You're right and wrong. If the company chooses to sell their shares into the open market they can do that, if they choose to raise money with a private placement from the authorized shares then they set the price.