Replies to post #28860 on BIH Corporation (fka BIHC)

[johnny2525]

I guess I answered my own question by doing some math of my own.
Assumption 14cent divy

Hold 1 million shares x .14 divy = 140000 x .15 tax rate
21000 in taxes = 119000 cash

Sell 1 million shares x .17sp = 170000 x .30 tax rate
51000 in taxes = 119000


So when the deal happens do not sell for under 17 cents if you plan on not taking the divy. If you hold out of the divy then anything above .0000 and you are making money. Lets say that the next day after the divy was paid, the share price dropped to .07 cents then its like selling your shares outrigth for 21 cents. You are still better off, then if you would have sold outrigt without taking the divy. After breaking this down for myself, it has opened my eyes to holding out for the divy.