What a wonderful IPO. While everyone's flying
high on internet IPOs, this one looks like a strong
growth stock perfect for the long haul. You're also
right about this stock selling at dirt cheap
Still, does anyone know what the company's rating
is? Anyone have any idea how MNY ranks on being able
to pay back their policy holders? Thanks.
I just spent quite a bit of time looking at
similar companie in the same sector/industry. It would
seem that based on similar size, cash, P/E, P/Sales,
P/Book that MNY will settle down in the $30 - $60 range
once the IPO dust settles.
Personally, I wish
they'd can the dividends and put them to work for a
Gonna let this one ride a while....
Although we do now all seem agreed that tax basis
is zero ... I will tell you what my accountant gave
me as the reason that basis is not the IPO price. It
is because even though policy/account holders
technically gave up some rights when MONY demutualized, these
rights were not "fungible" -- capable of being traded or
sold. Since, prior to the demutualization,
policyholders could not have sold those rights that were
eventually lost (voting rights and a share in the company if
liquidated) on any generally-recognized basis, the rights had
a value of zero. They may have had value to an
individual for whatever reason, but according to the rule of
the almighty dollar ... zilch. Therefore you traded
in something worth nothing for something worth in
excess of $25 a share.
<<Taxpayers subject to special rules under
the tax law, including pension and profit sharing
plans, welfare funds, and other tax-exempt entities
should consult their tax advisors.>>
this to mean if you received shares directly from a
qualified plan that you received a distribution. Expect you
will get a 1099R. If you didn't roll it into another
plan, then you have ordinary income for the FMV at date
of distribution. But that will be on your 1099R. In
that case, your basis will equal the amount reported
on your 1099R.
Will I be subject to income tax on the stock I am
receiving in the demutualization?
The MONY Group
Inc. cannot give specific tax advice. If you have a
personal tax advisor, you may wish to consult him or her
about your particular situation.
You will not
be subject to income tax on the receipt of stock in
the demutualization. If you later sell or dispose of
the stock, you will be subject to income tax on the
full amount you receive from the sale, which will be
treated as either long-term or short-term capital gain,
depending on whether you sell the stock more than one year
after you acquired your policy.
subject to special rules under the tax law, including
pension and profit sharing plans, welfare funds, and
other tax-exempt entities should consult their tax