GREY:SWYDF - Post by User
Comment by
MrAndersonon Dec 06, 2010 11:47am
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Post# 17806057
RE: RE: RE: RE: SWYDF:US 1,000,000 shares 4:15
RE: RE: RE: RE: SWYDF:US 1,000,000 shares 4:15I was thinking it has to do with the Bush era tax cuts. If those tax breaks are lost as of Jan 1 then US investors will see the tax rate for capital gains go up quite a bit. So if a US investor has accumulated a number of shares on the OTC they might want to do a non arms length transaction to trigger the capital gains this year at the lower rates. They may even want to rally the stock price so as to capture as much capital gains as possible (this could be the cause of the general market bullishness even with some of the bad news).
Its a bit backwards from the usual tax loss selling we expect in Nov/Dec.
Just some speculation on my part.