GREY:MPRXF - Post by User
Comment by
hrattleon Oct 24, 2011 4:58pm
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Post# 19177130
RE: RE: RE: $67.00 question?
RE: RE: RE: $67.00 question?proceeds from tax loss selling in the market will be used for buying highly deseriable stocks such as MGP
No, not for juniors. This might be true of blue chips but not juniors. No-one swaps to another junior - they might swap into a gold ETF to stay exposed to an upswing in gold. The whole purpose is to realise the loss and buy back after 30 days. During that 30 days you might not want to risk being caught in a general market move - but buying another junior doesn't hedge that risk as juniors move on news.
As for MGP being a tax loss candidate - clearly it is - as for most of this year it has traded higher. Key is whether shareholders believe that being out of MGP for 30 days over year end presents a risk of missing an important NR.