Not so much with the spelling........."dissaponted"
VERY impressive indeed! But since the federal subsidies were a large part of offsetting the initial cost, I don't think they are anywhere near the same level today. That may be partially offset by lowered costs of equipment today (?)
Do you realize that short sellers are trying to make profits just like you by buying low and selling high? The only difference is that they sell first and then they hope to buy it back at a lower price. Whether it's private investors or Hedge Funds, it is NOT illegal. You seem to be obsessed with the fact that the short sellers are evil and need to be stopped. If anything, they are taking a much bigger risk than longs. As a long, your maximum loss is what you pay for the stock (barring margin purchases), whereas shorts have a theoretical unlimited exposure to loss. An extreme example would be if a stock was shorted at say $50/share. After the market closes it is announced that the company is being bought out at $100, or they made a monumental discovery that quadruples their share value overnight. The shorts are then required to either put up a huge amount of money to cover a margin call or buy the stock back at the higher price. Not to mention that they have to pay margin interest plus any dividends/distributions the stock pays while they are short.
It's reality, whether you like it or not. By continuing to whine about it, you are not doing yourself any favors. Many people look to these message boards to get new information, not a continual rehash of your sour grapes.
Take it with a grain of salt. Here's a post from January 15th of this year when the stock was near its high at $35.75:
"APO price raised today...tgt..$41
BMO Capital raises price on APO to $41 from $35"
That's the exact day the price began to decline. Most analysts are reactive. On the other hand, Oppenheimer lowered their rating on APO the same day. So what is the true value of an analyst's rating? You decide.
You can try that argument with the IRS, but I sure wouldn't. LINE & LNCO both represent ownership in the same underlying company. I am no tax expert and I haven't seen any signs of one in this thread, which is why I recommended the original poster contact one to avoid problems at tax time. These types of companies present enough tax challenges without creating more of our own.
" The wash sale rules apply to purchasing a stock option to attempt to work around the rule for a particular stock as well.
According to the IRS,
“ordinarily, stocks or securities of one corporation are not considered substantially identical to stocks or securities of another corporation…”
My guess would be that the IRS would consider shares of both LINE & LNCO to be shares of one corporation.
Based on some of the replies you're getting, I suggest you contact a tax professional and not rely on people here who think they know what they're talking about. For example: "Alternatively, sell LNCO and buy call options." The IRS considers the stock and the call options on that stock as essentially the same security. Using that strategy would definitely trigger a Wash Sale.
Thanks, simpleguy. Very interesting and enlightening article (at least the parts that I could understand). Bodes well for the future. Any thoughts on the year end distribution?
This is a PERFECT example of the 2 emotions that rule the stock market: FEAR & GREED. It also perfectly illustrates why the average person doesn't make money. Common sense is counterproductive. As Warren Buffett says, "Buy when there's blood in the streets." But that is easier said than done. With all due respect, saldon63, it certainly looks like you did the exact wrong thing. Now you plan to exacerbate your mistake buy buying back in on an uptrend. Good luck to you, Sir.
I am long LNCO but ignoring the spammer, not LNCO. As far as covered calls, I would NOT consider writing covered calls when the stock price is depressed. When the stock rebounds it will be called away. You will receive a slight premium and probably miss out on a much bigger price appreciation. The time to write calls is after a nice move up. The premiums are much higher and you should have more profit locked in. I understand the concept of using covered calls to increase your yield, but I've always considered them a bet against yourself. I f you own a stock that is in a trading range, sell calls near the top of the range, but if it breaks out, you lose your stock. Just my humble opinion.
"and they problems to scale"...........It's way worse than I thought!
Why don't you crawl back into the hole that you crawled out from?