Silver Bull Resources Inc T.SVB

Collapse for 3 days -

[andre171]

The allocation of Arras shares cannot fully justify this collapse of SVB for 3 days. So what is negative going on?

[Heywood_Silvers]

Maybe the fact that 6 days after the distribution, nobody has received their Arras shares yet.  What does this indicate?  Maybe management doesn't have their act together very well? I always felt that the Bull should've never sold off the lion's share of Sierra Mojada for a pittance.  Now, they have parted ways with the KZ project.  What is left that would be

[roadtrain]

Arras shares are a dividend , IRS will apply a witholding tax to shareholders except those who show exemption. For this the IRS is using  50 cents a share on listing. South32 paid $100 m. for the 70% option. If legally possible could they withdraw the option and make a takeover bid for the lot for peanuts ?.  

[Heywood_Silvers]

Dividends can only be paid out of Earnings & Profits, a very specific term by IRS definition.  SVBL has no positive E & P, ergo, the Arras shares will be considered a return of principle to the extent of your basis and anything beyond your basis would be cap gains. Example:  your SVBL basis is 60 cents a share.  Arras is valued at 25 cents on the day the shares appear in