10-Q has been filed.
3Q buyback was 10.149 million shares costing 323.4 million, a weighted average cost per share of 31.87.
Combine this with Larrea's purchase and something is highly likely:
They know something is coming which makes these big purchases now very profitable in the not too distant future. Grupo is known for its over-reaching greed (in my opinion). It's on display now.
We did the calculations and came up with the same number $34.The Delaware courts will make him pay a premium but not a large one. I've got the same tax problems with my 30k shares of the original stock.
I learned many years ago that if you focus on minor details like that you will not invest in most companies and miss out on some great opportunities. Have a relative that works for Bank of America and tells me how broken they are......nevertheless I make big bucks on BOA every time I reinvest!!
The pattern is interesting as well. He's been buying since July and especially heavy in Sept and Oct (most recent purchase on 10/30). We'll see where it goes beacuse insider buying does not always mean an improving stock price.
Well, a US citizen is taxed on worldwide income PLUS there is an exit tax to give up citizenship. Moving won't do it.
Also, it was the socialist pig who said (referring to small business) you didn't earn it.
I do have a couple simple of suggestions.
If you're a man of faith you can pray that a buy-out is not in the cards. Absent that, you could move. If you don't like the idea of moving out of the country I suggest you relocate to Colorado or Washington state. I've been told that they're good places to mellow out.
By my calculations Larrea has bought 1,320,000 shares since 6/30 at a cost of $40,512,150 for an average share price of $30.69 (if my Frieden is correct). So ...... if my guesser is good, I'd say IF a buy out comes and SCCO is hovering around current share price the offer would be in the $34 to $35 range (10% to 15%) premium to Larreas cost).
DAR look at the bright side. Larrea knows a lot more about the future of SCCO then you or I. MAYBE he's just looking to capitalize on it and has no desire to buy us out .... but if ASARCO sells you might want to think about investing in a good set of luggage.
Hmmm ..... what would I do if I was forced to pay an additional $90,000 in taxes? I guess I'd smile and gladly pay it because Hillary has told me I really didn't earn it. But wait ...... what has the government done to earn it ..... hmmm ...... maybe a little re thinking is in order.
Well, I have 10,000 in a taxable account with a weighted average cost (before reduction by the 11/12 roc portion of the 2.75 dividend) of 11.0101. Any suggestions besides die before the buyout?
I'd rather make the money and pay the tax than not make the money. But just like KMP (an involuntary sale) has destroyed my tax plan for this year, when scco goes, that year gets destroyed also. I have one grandchild who should be out of kiddie tax for 2015 and I can shift a little bit to my kids who are approaching the socialist pig's extra tax thresholds on their own, but other than that, all I can think of is gifts to charity, but that is already covered by nrf stock with a tax basis of under 4. So I'm just screwed when it comes.
A tax when I voluntarily sell is my doing so I just shut up and pay it. It's the involuntary sales that are killing me, so I'm about to go to the voting booth. Unfortunately, they are not soundproof.
And NO, I'm not going to jump off a bridge just to save income taxes.
And here's Larrea again loading up for his certain profit at the buyout:
"Velasco German Larrea Mota, who is Chairman of the Board at Southern Copper, bought 550,000 shares at $28.43 on Nov. 3, 2014. Following this transaction, the Chairman of the Board owned 1.4 million shares meaning that the stake was boosted by 67.12% with the 550,000-share transaction."
Anyone notice that the share price of SCCO is now above FCX. Ya wonder why?
Larrea bought another 350,000 shares of SCCO @ $28.51 on 10/30 and an additional 200,000 shares on 10/31 @ $28.29. He now owns 1,569,367 shares.
So ...... have these buys helped to bolster the SCCO share price? Do ya think that the tutes have noticed insider buying and are jumping on the band-wagon ..... I'd bet they have.
Now let's examine DAR's guess that a buy-out is coming. To me, all signs point to it. But the real questions are WHEN and then at what premium and then how is it financed? IF a buy-out is in the works I think the first tip-off may be the sale of ASARCO. If we see a sale of ASARCO it might be wise to free-up cash in a sheltered account and if the share price of SCCO is reasonable ..... buy.
Think about it ....... and remember, IF a buy-out comes and you hold SCCO in a non-sheltered account you must consider the tax consequences.
What's the potential premium? GRUPO/SCCO are in the drivers seat and they'll keep the premium as low as possible ...... soooo ...... I'd guess a little north of 10% ..... but that's just my guess.
Anyone care to speculate on my speculations?