I'm pondering the idea of selling RPM for this reason:
I know I'm going to be in the 15% bracket this year and LT gains would therefore be taxed at 5% for me. My profit would not be enough to bump me up to the 25% bracket. I would like to own it again, but by selling and buying back in just over a month, I could raise my cost basis significantly and pay minimal taxes. Then, if our newly elected legislature thinks it wise to undo the 5%/15% tax rate on LT gains and dividends I would be better off, because my cost basis is now reset.
The downside is the stock takes off and I miss the appreciation. I'm thinking that's not terribly likely in 30+ days...
The tax rate on capital gains and dividend income should stay constant thru 2009 and I beleive the Dems will not extend the lower tax rates past 2010, and allow them to revert back to the old tax rate laws giving us all a tax increase. What bothers me is what kind of Judges they install, and with RPM's asbestos situation, would be of some concern to me going forward. Enjoy the lower rates on dividend income and capital gains while they last.