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Finally cleared my lot of shares today, at an extra $0.045/share above the last GO price of $0.14/share. This SupPack experience has reinforced my doggedness and patience as a value investor.
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congrats dydx! YES! DOGGEDNESS is needed very much indeed at these trying times!!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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06-07-2013, 01:15 AM
(This post was last modified: 06-07-2013, 01:23 AM by Devil.)
Crown got 90.53% of the shares. Compulsory acquisition seems imminent.
I wonder what are the grounds available to contest such acquisition.
and since subsequent offer has to be as good as any previous purchase, can shareholders now ask for more than 0.185 due to time value of money?
someone might also want to do some legwork, to verify that crown did not purchase any shares above 0.185? There were some trades at 0.187. the average price of crown purchase is 3599500.79/19459000=0.1849787
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For CA, it is 90% of shares o/s (EXCLUDING the shares already owned by offeror before CA).
so to do CA, Crown may need to have more than 90%. Unless they use another takeover vehicle.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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How you have the Gut to holdout that long is beyond me. Yes, a Beautiful Move indeed.
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At time of offer, isn't there any other investment opportunity that can give >30% at the same level of conviction???
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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It is easy to set up. But what is the tax implications? Mainly capital gains on sale of original takeover vehicle to the second takeover vehicle?
Is it worthwhile?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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08-07-2013, 12:48 PM
(This post was last modified: 08-07-2013, 12:49 PM by Devil.)
crown may be able to avoid paying such capital gain tax using approved special purpose vehicle, qualifying as approved asset securitisation transaction.
Even if they are unable to avoid the capital gain tax:
SAC Capital has a RNAV of 0.2955 for Suppack on 30 june 2012
Crown has to pay 17% on capital gain, which on 327,018,243 shares, for $0.045, is $2.5 million
Using an offer price of 0.185, the gain, calculated using RNAV, from eliminating the minority shareholders, is 29349502 shares*0.115, is 3.37 million. So they still make a profit.
Furthermore, they get to eliminate other shareholders, cutting down on the compliance costs.