Amarin Corp Plc (AMRN)

[sts66]

I'm not going to enter this contest, think they're pointless and a waste of time, but all you guys hoping for a quick BO better pray it's a stock swap deal, or cash + stock (neglecting CVRs), or you're going to lose about 1/3rd of your AMRN profits to fed and state taxes. An all stock deal is non-taxable until you sell the new shares, although I can't see any BP diluting that much to BO AMRN at the numbers being thrown around. Obviously doesn't apply to shares held in IRAs, but AFAIK folks here with big positions own AMRN stock mostly in taxable accounts - I'm split about 50:50 between IRA and cash accounts, and because I have one of the smaller positions here for reasons already explained the tax hit would hurt me relatively worse.

Example:

You have a $100k profit after an all cash buyout, taxes take 30%, you're left with $70k profit

You have a $1M profit after an all cash buyout, taxes take 30%, you're left with $700k profit


You can do whatever you want with $700k in your pocket - with $70k, not so much - it's akin to 10 yrs of living expenses vs. 1 yr.