Replies to post #42678 on SiNtx Technologies Inc (SINT)

[boston745]

Hell I am sitting on ~60m in tax sheltering because i held through 2 of those reverse splits on an 11k investment.

This more than anything would likely raise eyebrows at the SEC and likely IRS. How did this happen? Because it shouldnt happen this way and only encourages mgmt and funds to manipulate price of a stock to force reverse splits.

For the most part the reverse splits got progressively larger with the last two being responsible for my 11k investment turning into a ~$60m tax shelter.

15:1
12:1
30:1
100:1
200:1

[boston745]

Were you aware of funds purposefully causing reverse splits to cost basis harvest? If you weren't you are now so when you see it in the future call it out like I do. Doesnt stop it but at least you did something and educated people about whats really going on and WHY.

Not fully validated until Lexaria executes a RS this year, but it just moved a step closer today.

Once I understood that funds and management can benefit significantly from reverse splitting due to Cost Basis Harvesting, I've been able to call it out. My time invested in Sintx showed me how lucrative this can be as my 11k investment was turned into ~$60m tax loss essentially shielding me from ever having to pay tax on capital gains for the remainder of my life. TRNR, which was recommended to me because it was doing the same thing, but at much more reasonable scale; 10:1 instead of 100 & 200:1 like here; caveat being this is done yearly or even bi-yearly basis.
Anyways, now that I understand this, i've called it out at TRNR and LEXX (also recommended to me for this reason i believe). TRNR has already RS twice since I realized this with a third on the way. Meanwhile LEXX is heading that direction as it just released news of further extension with its MTA partner as ive been warning people about. That said, keep an eye on LEXX because like SINT, I think LEXX has a bright future...maybe brighter than SINT if SINT management doesnt allow it to succeed and because its Pharma tech potentially worth billions. You're welcome!

Given the Chairman's recent gift, this could be in the cards:

"Insider gifting shares to their company before a reverse stock split can be a form of strategic tax planning to lock in a higher charitable deduction based on pre-split valuations, often occurring just before a price decline
. This practice is known as "insider giving" or "insider gifting""


My belief is small companies with high upside potential also have high potential for RS for cost basis harvesting. Theres alot of warrants outstanding that could provide a significant offset to a company's tax liability if theres a RS.

As i said, making people aware of funds and management purposefully causing reverse splits to cost basis harvest doesnt necessarily stop it, but at least it explains whats actually going on and WHY so retail can protect themselves!

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