RedHill Biopharma Ltd (RDHL)

[Amatuer17]

One good investment strategy for investors who invested at high price and have large quantity of shares and still believe in company but want to do financial management by booking tax loss.


Example below is for IPIX but one can apply for RDHL - as my original purchases are between $12 to $13 - I purchased my original no of shares @ $7.50 and book losses after 1 month

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The current price of $ 0.70 is substantially less than some of the buying prices such as $1.70 to $ 2.0

- buy say say 5000 shares for $ 3500
- wait for 31 days
- three possibilities

1. price remains same - sell 5000 shares for $0.70 and book losses of $5000 (nearly $1 per share)
So you are with same number of shares with very low avg price and tax losses

2. price goes up to $0.85 due to B-OM in 1 month+

You still sell 5000 shares @0.85 - you book loss of $4250 and already showing profit as the baseline price has gone up (or you may decide not to sell as SP is going up)

3. price goes down to $0.55

You sell 5000 shares and book $5750 tax losses and now you have same no of shares at very low average

Booking of tax losses helps you get tax benefits while keeping same number of shares at very low price