Peak Discovery Capital Ltd V.PEC

RE: Signs of a venture stock....doesn't hold its g

[bxju]

Many bought at .07-10, some took profit and some are waiting for them to find gas...100,000 shares at .07 cost $7,000 and if by shear luck they hit gas and the stock goes to $4.50 a share a figure used by TD....that would be a $443,000 profit, pretty good risk reward ratio if you are a risk taker which anyone investing in these venture stocks obvioulsy better be.....if it is in a U.S. Roth that profit is tax free even when withdrawn.  I try to play these venture stocks in Roth conversions since you have the option of converting your IRA into individual partial Roth Conversions, each stock into a separate Roth..... you can do so on Jan. 2 of a calendar year and have up to Oct 15 on the following calander year to reconvert to an IRA if the stock does not do well. If you leave it in the Roth, you owe taxes on the basis when converted. There are no longer any income restriction on doing this.  If you are eligible and want to research doing this be sure to know all of the rules or consult an advisor.  My home run to date was converting a .05 venture stock into a partial roth conversion during a CTO, it is currently at 1.22 and I have also had some big losers and reconvert them back in to my IRA prior to filing my taxes the following year which can be as late as 10/15.