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Inergy, L.P. Message Board

danbrady 5 posts  |  Last Activity: Apr 19, 2016 3:56 PM Member since: Jul 29, 1999
  • Reply to

    TAX FREE

    by cd.logan Apr 19, 2016 8:48 AM
    danbrady danbrady Apr 19, 2016 3:56 PM Flag

    Just a few tax rule reminders for the dreamers:
    1. GGN produces distributions (not dividends) classified as Return Of Capital (ROC).
    2. ROC reduces your cost basis (buy a share for $10, get $2 in ROC back over time, and your cost basis when you sell it will be $8).
    3. You pay capital gains on any gain when you sell shares; either short term (your income tax rate) if held for less than a year, or 15% to 20% (depends upon your tax bracket) long term capital gains if the shares sold were owned longer than a year.
    4. Should your investment end up producing ROC equal to the entirety of your invested dollars, the ROC begins to be treated as income (cost basis cannot go below $0), and is subject to your income tax bracket. Further, if you sell shares with a $0 cost basis, the entire proceeds are further subject to capital gains.

  • danbrady danbrady Apr 15, 2016 11:51 AM Flag

    This action is more commonly seen from short covering. GSS has one of the higher short ratios among the miners, and has likely been a running gift to shorters for a few years. It looks as if a number of players have concluded that bankruptcy (pps - $0) is not going to occur after all, and they are exiting (likely still at a very good profit).

    This phase will be a back and forth between old shorts looking to buy, and new shorty arrivals selling to them, as most GSS longs won't be playing the in-and-out game. As the phase progresses, the mix of old-term shorts declines and new-term shorts increases; the new comers have a lot less tolerance for pps increases.

    A future phase, assuming the pm bull is in fact stirring, will bring actual new long buyers, and a different kind of price rise. (IMHO, current action is enjoyable, but still early game action).

  • Came to check in on the board after a few years absence. My screen shows 20 topics per page.

    All 20 topics in the CEF board were adverts by bots for stock picking services. Gives me an idea for my next investing ploy: short yahoo; their uses stats must be massively bogus.

  • Reply to

    Gold massive breakout day, GGN sits still?

    by cashflowgems Feb 5, 2016 3:53 PM
    danbrady danbrady Feb 11, 2016 3:52 PM Flag

    GGN (mainly) works via options on volatility of gold/nat resource shares. They sell "protection" against volatility, and when it doesn't materialize, they get to keep the protection money. In times of actual rapid price rises, they can (and should) under-perform, as they will essentially have to pay up on some actual protection that turned out to be worth something for the buyer.

    They also have a history of announcing their div policy (really mostly ROC classified profits from the protection activiey) every 3 months. They are due for another announcement this Feb; so there may be a bunch of money stepping out of GGN to avoid risk of a payout cut.

    So there you have 2 more factors that may be influencing pricing. GGN pricing in general is severely disconnectd from reality/fundamentals, so trying to "understand" the logic behind things may be something of a hopeless quest...

    Best of luck to all.

  • danbrady danbrady Feb 8, 2016 12:23 PM Flag

    Look into EXK, HL, PAAS, CDE, AG, SSRI for direct miners.
    Then check out SLW and SAND for financing deals for miners.
    CEF is a bullion fund that holds 50/50 Au & Ag (I'm not a fan of GLD or SLV).