Are you long or short here? You said you covered and went long around 79, no? Yet you seem to have been putting out the negative spin the last week or so. Did you flip flop once again??? At what level is your short cause the stock has only gone up since you turn negative again.
<<<<Well, if that did work then I would have my firm give me a 'loan' instead of paying me. They could later forgive the loan. >>>
These types of loans are structured around up front money, signing bonuses and the like. Companies won�t go as far as to compensate regular everyday employment in this fashion. It doesn�t look good on the books having a tremendous amount of personal loans outstanding, among other things . It�s a gray area in the way these can be reported if everyone was to do it, it would no long be a gray area. Its nice to have this option thats why you would not abuse it. I could really careless as stated before on this topic in regards to ERTS. My point being I've seen it done so there are ways to do this and get around tax laws.(gray area) The only reason I waste my time on this subject is because SPEC' is adamant that it will always be a taxable event and he might be a little off on this one.
I covered some around 69 (on record on the TTWO board) and the rest around 81 then went long. If you're on tlo's board you'd see how complimentary I was of the Madden MTV 30-minute infomercial. If I were trying to be bearish on ERTS there's plenty of material, but some of this stuff should be fixed no matter what - like forgiving multi-million loans, WTH?
Forgiving loans is a great way to compensate. I am not saying its right or wrong. Think about it, it�s a way around the tax system. From what I�ve seen if a company really wants a certain individual and they know he will be looking for up front money (signing bonus) setting up a loan that they will forgive is the way to go. If they gave him a signing bonus he would pay half of that in taxes this way he does not. The loan structure gives the company the ability to pay out less overall, instead of having to put more on the table to get their man. I�m not saying it right but its currently a gray area and at least there not hiding it.