The shorts may be selling but the main reason SBGI and BLC are weak is because the tax rate on people making $200K and couples making $250K may go from 15% to 43.4% if the fiscal cliff hits. The rich are dumping these stocks and the sector is weak as well in sympathy. Just a fact. If Bush era tax cuts are extended the sector will jump. Not a lot of good news coming after Q4 report. DaninFW
Please elaborate on what tax we are talking about, specifically. I thought I knew about this issue but perhaps I don't! I want to make sure we are comparing apples to apples. Is the 15% referring to the long-term capital gains tax rate? Is the 43.4% a combination of multiple taxes (payroll, income)? Thanks!
Current max tax is 15% on dividends and capital gains. Can be zero to 5% on dividends depending on tax bracket. If tax cuts expire the rich go back to max tax bracket of 39.6% and over the $200K individual or $250K joint they get hit with 3.8% from the new and exciting Obama Affordable Care Act. That's 43.4% and they are running scared......DaninFW
I just added 1500 shares at 10.61. Yep, what I paid 11.76 for will cost me 10.61 in a couple of weeks with the 1.15 of divy coming my way. Have to see a bump up coming into the divy date. Right now we are looking at a one time 10% dividend for holding 2.5 weeks.
What happens on Dec 1st is anyone's guess but I can't imagine this thing going anywhere but up until then.