MMS - McMillan Shakespeare

[galumay]

I am a bit conflicted with MMS, i bought a parcel as a spec purchase, its outside of my normal investing and I am now up 30%. The problem for me is that I will have to pay CGT at my marginal rate (highest bracket), if I sell within 12 months.

By my calculations if they are still anything over $10.60 in 12 months I will be in front compared to selling now at $11.50.

I feel like I need to set a sell point but I am torn between setting a date (after the election, 12 months +, etc.) or setting a price and selling then.

Does anyone have any suggestions as to a strategy in this sort of situation?

 

[db94]

Adding on my last post: (can't seem to edit on iPhone)

There will no doubt be a correction though sometime soon if the rally continues

 

[twojacks28]

Adding on my last post: (can't seem to edit on iPhone)

There will no doubt be a correction though sometime soon if the rally continues

The other side of that argument is that this is the correction. A month ago this was trading at $18 and today closed at $11.50. It obviously cannot continue to rise at such extraordinary levels though although I'm happy to be proven wrong

 

[Klogg]

Does anyone have any suggestions as to a strategy in this sort of situation?

Don't make a decision solely on tax considerations. If you think it's a 'sell', sell it and pay your tax accordingly...

It's not nice paying 45% tax, but you don't get around that by holding things more than you should... You'd rather take a look at your entity structure (would you be better off w/ a trust, corporate trustee and holding company beneficiary) and put that in place instead... This way your tax considerations don't sway your investment decisions.

Remember, in simple terms, paying tax just means you're making money.

(P.S. entity structure mentioned was just an example - not advice)

 

[FxTrader]

The other side of that argument is that this is the correction. A month ago this was trading at $18 and today closed at $11.50. It obviously cannot continue to rise at such extraordinary levels though although I'm happy to be proven wrong

Given the buying interest today in MMS there could easily be more headroom from here. I thought the $10 resistance level would hold a bit longer but the debate and polling numbers seemed to have caused a breakout and surge in confidence that the FBT changes are never going to see the light of day. I would expect momentum to slow from here.

 

[ROE]

I am a bit conflicted with MMS, i bought a parcel as a spec purchase, its outside of my normal investing and I am now up 30%. The problem for me is that I will have to pay CGT at my marginal rate (highest bracket), if I sell within 12 months.

By my calculations if they are still anything over $10.60 in 12 months I will be in front compared to selling now at $11.50.

I feel like I need to set a sell point but I am torn between setting a date (after the election, 12 months +, etc.) or setting a price and selling then.

Does anyone have any suggestions as to a strategy in this sort of situation?

nope ... Tax is an after thought ....Make profit is the foremost consideration.....obviously If I already hold for 11 and 1/2 months
and thinking to sell then I would wait another week or two but not for months if I want to get out...

 

[db94]

It seems like there's a fair bit of resistance at the $12 mark. It hit there then came back down very fast

 

[twojacks28]

Seems like a few people are trying to force the stock down and then buy at a cheaper price.

 

[tech/a]

Seems like a few people are trying to force the stock down and then buy at a cheaper price.

How do you know that?

 

[db94]

I got the hell outta there at 11.15. I dont think today will turn out too good... It was pretty over bought and this will be the correction IMO thats not to say that it wont continue on to 13-14 in a few weeks

 

[FxTrader]

I got the hell outta there at 11.15. I dont think today will turn out too good... It was pretty over bought and this will be the correction IMO thats not to say that it wont continue on to 13-14 in a few weeks

I would say that profit takers are dominating given the big price spike the last two days, hardly that surprising really. If holding out for a post-election MMS market price, $14-15 would seem to be a reasonable target price to exit on. If MMS does get to $14 pre-election then the decision to hold becomes more complicated and depends on one's view of upside potential from there.

 

[twojacks28]

How do you know that?

Watching the market depth this morning and what was being traded there was a substantial amount of small trades being put on at well below the current price. There was plenty of 1, 20, 50, 100 units consistently being put on at 10-15c lower than the current price. I think it's achieved it's goal with a bit of panic selling, by people who think it's gone up too much too quickly. There is no doubt it has skyrocketed but given the potential and upside there is no reason to sell at the minute imho.

I got the hell outta there at 11.15. I dont think today will turn out too good... It was pretty over bought and this will be the correction IMO thats not to say that it wont continue on to 13-14 in a few weeks

Panic sell?

I would say that profit takers are dominating given the big price spike the last two days, hardly that surprising really. If holding out for a post-election MMS market price, $14-15 would seem to be a reasonable target price to exit on. If MMS does get to $14 pre-election then the decision to hold becomes more complicated and depends on one's view of upside potential from there.

No doubt there are people taking the quick profit they've made. Still a substantial volume being bought though. I think the fund managers are acquiring the stock at the moment.

- - - Updated - - -

The train has stopped at the station and is just refueling.

 

[db94]

Panic sell?

Pretty much. I mean it was my first trade ever and to get on a stock that went up 12% in one day, hit $12 the next and then fall by 3.5% is pretty crazy for me.

I think im gonna get on it again though. Looking at the slow stoch in a 5 day period it was over bought for a few days and is now undersold, so im thinking of getting on it again once the stoch gets back up above the over sold region

I think this arvo could be a good time to buy IMO its seems those who were in it for the short term gains are panicing (as stated previously and I myself did this) and its causing the price to fall. I'd suspect the financial institutes will be getting on it while people are panicing and its cheaper IMO

edit: i cant imagine what sort i'd be in if i'd held any longer with the price now at $10.91

 

[twojacks28]

Pretty much. I mean it was my first trade ever and to get on a stock that went up 12% in one day, hit $12 the next and then fall by 3.5% is pretty crazy for me.

I think im gonna get on it again though. Looking at the slow stoch in a 5 day period it was over bought for a few days and is now undersold, so im thinking of getting on it again once the stoch gets back up above the over sold region

I think this arvo could be a good time to buy IMO its seems those who were in it for the short term gains are panicing (as stated previously and I myself did this) and its causing the price to fall. I'd suspect the financial institutes will be getting on it while people are panicing and its cheaper IMO

edit: i cant imagine what sort i'd be in if i'd held any longer with the price now at $10.91

That makes sense then. I remember my first trade and I couldn't look as it plummeted the second I bought. I'm going to buy some more now actually. People are taking their profits and running.

 

[db94]

That makes sense then. I remember my first trade and I couldn't look as it plummeted the second I bought. I'm going to buy some more now actually. People are taking their profits and running.

still pretty stoked with how i went though. To make $65 off a $720 trade aint too bad thank god for the free $500 brokerage otherwise I would have only made $25

 

[twojacks28]

We all have to start somewhere mate. Just got another lot at 10.95 so pretty happy with that.

 

[tech/a]

Technically I think your being suckered by some astute sellers.
Its common for a gap to be tested.
Un common for it to be closed particularly in quick time and particularly such a large gap down.

Both the gap will and is being tested then the low at around $7s
Wouldn't be buying my brains out.

 

[db94]

It appears there's a fair bit of support at $11. It'll be interesting to see what happens tomorrow

 

[twojacks28]

The stock had gone up roughly 33% in a couple of days. It couldn't continue rising at such levels and a downturn like this was inevitable. It is going to continue to go up even more the closer we get the the election. People are merely taking the quick profit and there is lots of them.

 

[db94]

The stock had gone up roughly 33% in a couple of days. It couldn't continue rising at such levels and a downturn like this was inevitable. It is going to continue to go up even more the closer we get the the election. People are merely taking the quick profit and there is lots of them.

I agree and i think this was just an exhaustion gap. People decided to jump boat as soon as things got bad. Although Im still a bit confused why it fell so sharp at $12. If it falls below $11 it could get ugly real fast tomorrow.Im still optimist though