Selling delisted share holdings

[Dream_Trader]

Hi all,

I have a question this Friday afternoon in relation to how to sell/dispose my shares in a company that has been delisted from the ASX.

As far as I know, there are two options below I could persue to do so:
1) Look for a buyer myself, be it the company itself or otherwise, and settle the sale as an OTC transaction.
2) Sell the share to delisted.com.au and crystallise my loss for capital loss tax purposes.

Does anyone know of any other options that are available or any other specialist brokers that deals with selling/buying of delisted stocks. It seems rather strange to me that delisted.com.au is the only player in this field and has a monopoly in it for the whole Australian market.

Would kindly appreciate if anyone could help me on this. Many thanks in advance.

 

[Dream_Trader]

Is there anyone who would be able to help me with my query above? Very much appreciated if anyone can..

Hi all,

I have a question this Friday afternoon in relation to how to sell/dispose my shares in a company that has been delisted from the ASX.

As far as I know, there are two options below I could persue to do so:
1) Look for a buyer myself, be it the company itself or otherwise, and settle the sale as an OTC transaction.
2) Sell the share to delisted.com.au and crystallise my loss for capital loss tax purposes.

Does anyone know of any other options that are available or any other specialist brokers that deals with selling/buying of delisted stocks. It seems rather strange to me that delisted.com.au is the only player in this field and has a monopoly in it for the whole Australian market.

Would kindly appreciate if anyone could help me on this. Many thanks in advance.

 

[pixel]

Is there anyone who would be able to help me with my query above? Very much appreciated if anyone can..

AFAIK, delisted.com.au is your only option.
However, if the company has been wound-up and the receiver declares the shares to be worthless - recent example QFX - then you won't need a sale in order to claim a tax loss. Simply attach/ present the receiver's letter with your tax return.

 

[Dream_Trader]

Hi Pixel,

Many thanks for your reply above. The company has been delisted for close to 1.5 years now and there hasn't been any news out from the company or has it appointed a receivership to wound-up the company. I guess my option here now is to go through delisted, or to hold on to the share.

It seems rather strange that delisted, is the only player in this field of buying delisted stocks and has a monopoly in it for the whole Australian market. Is this true, and if so how would delisted make money by buying up all this delisted stocks (they are a company and needs to make money after all)

Many thanks once more for your (or anyone else's) much appreciated assistance on this.

 

[pixel]

how would delisted make money by buying up all this delisted stocks

They're making money alright:
When they take the stock off your hands, so you can claim your tax loss, they don't pay you, but in most cases you'll have to pay them a fee.
Give them a call and ask for a quote.

 

[Dream_Trader]

Hi Pixel,

That does makes sense making money from the processing fee alone. Strange no other company is doing this, perhaps this is a gap in the market and someone could set up a company and charge a lower fee to undercut them

 

[Bill M]

Hi Pixel,

That does makes sense making money from the processing fee alone. Strange no other company is doing this, perhaps this is a gap in the market and someone could set up a company and charge a lower fee to undercut them

I sold a failed and delisted stock through Delisted.com.au. I think I paid $80 for them to take the shares of my hands and they paid me $1 for the shares. So they make money on that cost you pay them. Plus at the time they said that if for some reason those shares came good (highly unlikely but not impossible) then they get the rewards. I thought it was a fair deal, it meant I could move on and wipe the slate clean, good luck.

 

[Dream_Trader]

Thanks Bill. I think I have seen on the website the fee is now $150, and this amount can be included as the capital loss for tax purposes. Not cheap though in my opinion lol.

As there is no receivership in process for this delisted company, but rather it was bought over by a Singapore listed company, however there hasn't been any news out from the company close to 1.5 years now, I am not sure if there is still any value in this company. I think that's something for me to evaluate and decide

 

[mick1990]

I'm in a similar position - anyone know if you can sell the shares to any random private company or do Delisted have some kind of licence allowing them to purchase them? Cheers.

 

[pixel]

I'm in a similar position - anyone know if you can sell the shares to any random private company or do Delisted have some kind of licence allowing them to purchase them? Cheers.

If there is another similar facility, I'm not aware of it.
In any case, demand may well be limited; for traders there is usually the stop-loss. Investors being stuck with a dud will be more inclined to wear the delay and see if there is a chance of recapitalisation or backdoor listing. Which is quite likely the main source of income for delisted.com.au as well...

 

[mick1990]

Ah thanks fair enough, I have heard next to nothing about the stock in a while so I might just wear the fee so I can claim the loss...

 

[skc]

Stupid question... can you simply do a off-market transfer of the stock to someone like a spouse/children etc? Make it a nominal $1 consideration and pay what ASIC/registration fee there is, and do away with fee for delisted.com.au?

Unless there are regulations preventing the transfer of shares in companies under administration...

 

[pixel]

Stupid question... can you simply do a off-market transfer of the stock to someone like a spouse/children etc? Make it a nominal $1 consideration and pay what ASIC/registration fee there is, and do away with fee for delisted.com.au?

Unless there are regulations preventing the transfer of shares in companies under administration...

You probably could do that, but check the rules governing off-market transfers. Many years ago, I did some OMT's, but they had to be done at the last trading price - from memory. And there were also some broker costs involved for the paperwork at the respective Share Registries.
Talk to your Broker, is probably the best bet.

For valueless, deregistered stocks, however: who would want to hold the junk? Especially if it's someone close, like kids pr spouse? Did you plan doing it for tax purposes? As in "If it does take off after all, the Lady of the House would pay CGT at a lower rate than the Main Breadwinner" ?

 

[skc]

You probably could do that, but check the rules governing off-market transfers. Many years ago, I did some OMT's, but they had to be done at the last trading price - from memory. And there were also some broker costs involved for the paperwork at the respective Share Registries.
Talk to your Broker, is probably the best bet.

For valueless, deregistered stocks, however: who would want to hold the junk? Especially if it's someone close, like kids pr spouse? Did you plan doing it for tax purposes? As in "If it does take off after all, the Lady of the House would pay CGT at a lower rate than the Main Breadwinner" ?

It's just to realise the tax loss/offset gains. There's no consideration to future upside.