Almost buying Nortel.............
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Re: 50% capital gains. Do they take your first born as well?
It used to be 75% of the gain was taxable just a few years ago.
Hey, it is much better now.DonQuixote said:In the US capital gains are 10% if held for over 1 year.
Brutal tax on gains up North. And you wonder why
there's a brain drain in favor of the US.
It used to be 75% of the gain was taxable just a few years ago.
I don't think there is a long and short term distinction here in Canada.Tom_002 said:Is there any distinction in Canada between long term capital gains and short term capital gains?
In the US the holding period has to be one year in order to qualify for special tax treatment.
One more question, Can a taxpayer offset ordinary income, ie from wages, interest, etc. with a net capital loss? What are the rules please??
Tom
I believe it is a straight across the board 50%.
I think dividends are taxed at a more favorable rate.
I know in the US, when someone exercises an option, they get a reduced tax rate if they hold it for some period of time.
However, they have a set tax obligation even if the price crashes.
Many people got greedy and burned by this.
Capital losses can only offset capital gains, not employment or interest income.
Capital losses can be carried forward indefinately, and they can offset gains going back up to 3 years.
now, when i purchase the shares in two weeks and make the occassional buy/sell transactions, do i have to report the gains/losses from each of those transactions in this year's income tax filing?? do i have to keep track?? anyway, i'm set on buying nortel pretty soon, friday's close is 4.07 and i suspect somewhere in the late $3 in the coming week.
Nortel is the crack-cocaine of the investing world.
People that have lost a ton of money cant resist sticking their heads back into into it in hopes of "getting even".
I'd wait until all the principals involved are wearing prison pinstripes before getting back into this turkey.
Nobody has ever known what the underlying value of this stock is. Can anyone believe these guys?
Of broader concern is the fact that the market is already almost fully valued. The only real action in the past year has been oils, metals, gold and income trusts. Uranium and coal have some room to move upwards, but that's about it. The techs have had their run. Biotechs - maybe. If you like to investment "surf" the only place to be is the Nasdaq. You pretty well have to be a day-trader in that market. No-one, repeat no-one, should be in the commodities markets unless they have expert-level knowledge - far too dangerous.
The US economy is casting a darker and darker shadow over the markets.
If you have to be in the market, be somewhere safe this year.
Ideally something that pays a dividend, or a dividend income fund like PH&N. The direction of the market is very unclear, and a sharp drop is more likely than a sudden upsurge.
It's easy to make money in an "up" market and easier still to lose it in a "down" market. In a down market, stocks like Nortel can dump 50% of their value in a matter of days.
People that have lost a ton of money cant resist sticking their heads back into into it in hopes of "getting even".
I'd wait until all the principals involved are wearing prison pinstripes before getting back into this turkey.
Nobody has ever known what the underlying value of this stock is. Can anyone believe these guys?
Of broader concern is the fact that the market is already almost fully valued. The only real action in the past year has been oils, metals, gold and income trusts. Uranium and coal have some room to move upwards, but that's about it. The techs have had their run. Biotechs - maybe. If you like to investment "surf" the only place to be is the Nasdaq. You pretty well have to be a day-trader in that market. No-one, repeat no-one, should be in the commodities markets unless they have expert-level knowledge - far too dangerous.
The US economy is casting a darker and darker shadow over the markets.
If you have to be in the market, be somewhere safe this year.
Ideally something that pays a dividend, or a dividend income fund like PH&N. The direction of the market is very unclear, and a sharp drop is more likely than a sudden upsurge.
It's easy to make money in an "up" market and easier still to lose it in a "down" market. In a down market, stocks like Nortel can dump 50% of their value in a matter of days.
Happy said:short, based on your questions, sounds like you are still green in investing (no offense), unless you already have a portfolio of solid companies, I wouldn't recommend you gambling on Nortel. There are just so many better stocks to buy. Sure, if Nortel shot up, it'd be phenomenal, but there's always the downside. To win in investing in the long run is not about chasing stocks that could triple or go to zero. It's about finding a basket of rock solid companies that are leaders in their industries with proven earnings and prospects for growth.
I made tons of money in Nortel LAST YEAR but I won't touch it with a ten foot pole now, it's too murky.
If you feel compelled to buy some stocks, buy Manulife Financial or Sunlife. Put them away for a year, ignoring the daily fluctuations, you should be rewarded a return north of 10%.
yes, i'm green in investing........i'm just a student exploring an option(s) to make quick nominal returns here and there and i thought nortel can enable me to do that since it swings up and down. as for manulife or sunlife, i can't afford those.
i found a site that caters to info strictly for penny stocks.......any recommendations??
http://www.allpennystocks.com/apsc/can/hot_cdnx/index.htm
http://www.allpennystocks.com/apsc/can/hot_cdnx/index.htm
I would recommend that you only risk money that you can comfortably afford to lose and always use a stop loss to avoid disasters and in some cases to lock in some gains.short said:i found a site that caters to info strictly for penny stocks.......any recommendations??
http://www.allpennystocks.com/apsc/can/hot_cdnx/index.htm
You buy Nortel because it is the stock to own - not that that it makes sense to buy it. It is THE ONE you talk about.
I don't think Nortel is going to drop to 2.50 any time soon, sorry to disappoint.
They have sorted out their books right up until 2004. 2004 results are due this month and they will file, you can bet on that. They still made a profit in 2003, just not as much as they said they did. I can't help but wonder if they had of released "the real results" I bet that this stock would be sitting around 6 or 7 bucks right now based on the numbers they just released at the start of the week. Because of the scandle, the selling has been overdone.
The question on a lot of people's minds right now is, "How's business now?"
The entire scandle has been a drain on the company. They need to get back to work selling telecom equipment. But part of me thinks that this is kind of like Ben Johnson. Everybody does it, only Ben got nailed. In the market I think it's the same, everybody does it, Nortel got nailed.
On the plus side, they have cleaned house, they have reissued all results other than 2004, most of the board is not seeking re-election, and they are trying to get those bonuses paid back. You can bet that the results that you see from here on in will be valid.
On the down side, the market is falling, the telecom sector is still not out of the woods, and a great deal of trust has been destroyed. Further there are huge class action lawsuits (not that they ever go anywhere anyway) pending criminal investigations (Dunn, Roth and the rest, look out.)
Jim Crammer said of Nortel that he loves accounting scandles because it causes a huge drop in the stock and allows you to pick up a good deal on a solid company.
Unless Nortel is going to go broke (I don't think that it is), then long term, people will be looking back at this and kicking themselves for not buying.
The question is, is Nortel going to go broke? Would the Canadian gov't let that happen?
A couple of other dark clouds on the horizon would be the threat of delisting from the NYSE (though with the filing, that appears unlikely) and or a reverse split, which would not be good for your holdings in Nortel.
If you don't think that NT is going to go broke, then this is a buying opportunity in the long run. If NT doesn't go broke, don't think that the highest price on this stock in the next five years is going to be 4 bucks.
They have sorted out their books right up until 2004. 2004 results are due this month and they will file, you can bet on that. They still made a profit in 2003, just not as much as they said they did. I can't help but wonder if they had of released "the real results" I bet that this stock would be sitting around 6 or 7 bucks right now based on the numbers they just released at the start of the week. Because of the scandle, the selling has been overdone.
The question on a lot of people's minds right now is, "How's business now?"
The entire scandle has been a drain on the company. They need to get back to work selling telecom equipment. But part of me thinks that this is kind of like Ben Johnson. Everybody does it, only Ben got nailed. In the market I think it's the same, everybody does it, Nortel got nailed.
On the plus side, they have cleaned house, they have reissued all results other than 2004, most of the board is not seeking re-election, and they are trying to get those bonuses paid back. You can bet that the results that you see from here on in will be valid.
On the down side, the market is falling, the telecom sector is still not out of the woods, and a great deal of trust has been destroyed. Further there are huge class action lawsuits (not that they ever go anywhere anyway) pending criminal investigations (Dunn, Roth and the rest, look out.)
Jim Crammer said of Nortel that he loves accounting scandles because it causes a huge drop in the stock and allows you to pick up a good deal on a solid company.
Unless Nortel is going to go broke (I don't think that it is), then long term, people will be looking back at this and kicking themselves for not buying.
The question is, is Nortel going to go broke? Would the Canadian gov't let that happen?
A couple of other dark clouds on the horizon would be the threat of delisting from the NYSE (though with the filing, that appears unlikely) and or a reverse split, which would not be good for your holdings in Nortel.
If you don't think that NT is going to go broke, then this is a buying opportunity in the long run. If NT doesn't go broke, don't think that the highest price on this stock in the next five years is going to be 4 bucks.
James Kirk!
You're willing to put a far higher P/E multiple on the stock than I would. I see that Nortel reported E.P.S. of U.S.$0.06 per share before extraordinary items for 2003 - with 2004 remaining a mystery. I like to give a "good" growing company a 20 multiple. That implies a stock price of U.S.$1.20 or Cdn.$1.45. Of course there are others who would ask me why i would pay anything over book i.e. net equity per share for a company as shaky as Nortel, book being U.S.$0.91 per share.I can't help but wonder if they had of released "the real results" I bet that this stock would be sitting around 6 or 7 bucks right now based on the numbers they just released at the start of the week.
Yes, but in this case solid is the key word. I don't think Nortel can be said to be solid.Jim Crammer said of Nortel that he loves accounting scandles because it causes a huge drop in the stock and allows you to pick up a good deal on a solid company.
Perhaps not but keep in mind that bailing out a company is not the same thing as bailing out the shareholders. If Nortel were to require a government bailout to survive, its shareholders would be wiped out. See Air Canada.The question is, is Nortel going to go broke? Would the Canadian gov't let that happen?
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