I pass the time shopping for boats and trucks to pull them with.  Going to have to spend that moon money on something right?

yeP!

Problem is, unless it’s not buyout stock we get in return, I need to remember I need to let it all sit for at least a year to avoid short term capital gains.

Never thought about that part.

If there is a stock buy out and stock is offered in the new (other) company is the 1 yr measured from the initial purchase of the first company or reset to the issuance of the stock in the second?

From the initial purchase date of the buyee stock.

Also if you’re concerned about short and long term capital gains, I’f you’ve made multiple purchases like many of us have, you need to read up on FIFO, LIFO, etc. (first in first out, last in first out, etc).

I’ll most likely be cashing out different blocks based on purchase dates.  And depending on the purchaser, I may very well let some ride.

OLN doing great today

Getting a definitive answer on this is like riddling the Sphinx.

1/6 of my current holding is LTCG. How that would translate into a xx% share acquisition requires Chinese algebra and dark rituals performed under a full moon. I'm hoping and praying it's 100%, because I'll sell those shares that do directly translate into LTCG immediately and sit on every last one of the remainders and wait for their maturation...depending on who does the buying, of course, and the outcome of the election.

ETA: every time this subject comes up my retired-book keeper wife pulls out a calculator and begins doing an imitation of the British hotel desk clerk in European vacation. She says in a 100% stock buyout, at a $10 equivalent MVIS share price, the difference between a STCG sale and a LTCG sale on our shares classified as STCG right now would amount to about $70,000. For that kind of money I would be very, very patient.

I have never had a client with this issue but...my thinking is that you would want to identify the specific lots to sell which represent the 1/6 and leave the rest to sell when it hits LTCG.  Should be pretty straight forward.

Not that this darned buyout will ever happen it seems.

ISZ, losing faith?

Didn't realize the special proxy meeting is at 9:00 am PST (our time) Thursday. According to my chicken bones and sacred crystals, this augurs well for a positive development. MVIS has a long and rich tradition of announcing bad news after trading hours on Friday....though, to be fair, somehow everyone seemed to remember it pretty well on Monday morning

It’s probably just exasperation, wanting to get this all over with.

If that’s it, I know the feeling.  

I haven’t lost faith.  I’m not as heavily invested, but would like some action to start happening.

Another concern is what happens to the market, and if the buyout is in stock of the buying company, what happens to that stock price between the sale & cashing out.

It’s very likely that market/political events could make waiting to avoid $70k in potential taxes becomes a mute* point... or even a bigger loss.

*

No just patience.

It is having a stellar day today.

I really do not expect a buyout or significant announcement Thursday.  

The mid day timing est is odd.  If they don't give some hint or announce something, the afternoon selloff will be painful.  

But I have to admit that the timing is odd.

Nice little run here

Hmmm, it just got a lot odder. But like a magnitude of ten.

I knew this was coming, but hadn't seen the date:

Upcoming Workshop Bharath Rajagopalan 8 OCTOBER | 4 PM - 5:30 PM Pacific Time Laser Beam Scanning for Near-to-Eye Display Applications: A Preview Bharath Rajagopalan Director, Strategic Market Development at STMicroelectronics

This is at 4:00 PM PST on the same day as the MVIS special proxy. Bharath used to work at Microvision, and given Microvision and STMicroelectronics previously announced "strategic partnership", well, I've almost given up believing in coincidences.

As it just so happens, STM did a proxy about six months back and got their shareholders to authorize a war chest of money/shares available for M/A.

What happens in an acquisition or buy-in when Company A buys Company B? Company B's stock (MVIS) goes up, while Company A's stock usually goes down, depending on how the shareholders view the acquisition. Microvision announces a positive proxy, and STM's director of Strategic Market Development gives a special "LBS proves the winner in near eye display technology" preview of Photonics West 2021 just after market close the same day? Sounds a lot like a corporation defending a major purchase to their shareholders.

Up until now, I'd thought the minority partnership was a bluff. Not so much now. I'm not calling it a prediction, but all the pieces sure are aligned this direction - STM is positioning to take the entire 60M share placement at some small premium to the current market price, and Bharath's little workshop would make a bully pulpit to do it. It will set Muffy sailing, but here's the real potential money maker...

...there are over 18 million short shares that have to cover. If STM announces, it will set off a brutal short squeeze Friday morning. It won't last long, but I'll FIFO all 10K LTCG shares I'm holding if/when it does....

None of this is to be taken as investment advice, just speculating (no pun intended)

Was looking like a decent day for the market. wut happened?

ETA: According to the other thread: Trump Rejected the stimulus, told Republicans to stop negotiating with Democrats until after election.

Trump put the kabash on a stimulus until after the election because Drunk Nancy will not negotiate.

Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their...

Donald J. Trump  (@realDonaldTrump) October 6, 2020

...request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business. I have asked...

Donald J. Trump  (@realDonaldTrump) October 6, 2020

...@senatemajldr Mitch McConnell not to delay, but to instead focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett. Our Economy is doing very well. The Stock Market is at record levels, JOBS and unemployment...

Donald J. Trump  (@realDonaldTrump) October 6, 2020

...also coming back in record numbers. We are leading the World in Economic Recovery, and THE BEST IS YET TO COME!

Donald J. Trump  (@realDonaldTrump) October 6, 2020

those tweets got me a nice $1.50 discount on additional shares of DPHC

Didn’t here about this until now. No wonder the market changed direction from earlier in the day.

Very similar most of my money is VFIAX and FBGRX funds.

Glad I cancelled my 100 share sell order @ $2.15

I didn't know about the STM party at 4pm.  That is very interesting and certainly could explain the timing of the mvis meeting in the middle of the day.

I would rather one of the really big tier 1's buy in as the minority shareholder so we would get a better bounce and a quicker and more violent squeeze.

Maybe a consortium.  Who knows at this point but I have seen STM allocate shares for multiple years for M&A so no telling how many are left from prior years allocations to spend.  I hope they can afford us.

Help me understand this. If I have an account and do nothing but leave everything in the account and reinvest, do I still have issues based on buying and selling?

Raise your ask

Please dumb this down to our level so we can follow along if it makes sense.

First in First Out

Long term capital gain shares.

Ill take a stab at this translation: He is expecting the shares to jump up free fall temporarily and therefore he will exchange his 10k shares he's had for long term ( therefore limiting his tax exposure) for an inflated lower stock price.

$8.70 a share

Wondering if I should cancel my buy order for 100 @ $1.85 as well? Who knows what the swings from good or bad news could bring.

baller!!!!!

I think short squeeze causes the price to spike.

Damn. It was a 50-50 guess  

Vibe:

You got the FIFO part right. It’s a rare occasion where I know more about investing than anyone.

In large part it would come down to what STM would agree to pay for those 60 million shares. Logically you would think they'd get them at a discount to the current market price, but in reality - at say $3.00 a share - they'd be getting them at a huge discount to what an open market purchase of MVIS would cost. If STM tried to buy up a third of the company open market, the price would run away from them so quickly they'd be lucky if they weren't paying $10 a share before it was all over.

That's between MVIS and STM. The market would (hopefully) view it as the cornerstone of a potential consortium that would own NED for XR - and what is projected to be a multi-billion, possibly trillion dollar market. So...MVIS starts to climb, and lots of shorts who borrowed shares much cheaper get margin called. It doesn't happen often, but it does happen when a share begins to violently appreciate. Meanwhile, us meanie longs refuse to sell... It can get very ugly, very fast for the shorts.

Remember what happened to Kodak? At $2.00 a share everyone was waiting for the Chapter 11, and the shorts had piled in heavily to feed on the carcass...right up until news of the gov't contract broke. The price spiraled out of control up over $30.00 as shorts tried desperately to cover their positions. It took two (three?) days for the dust to settle, at which point the price drifted back down to about $5.00, where is where the market actually valued Kodak with the contract.

Thursday may come and go just like normal, but I'm setting up a trade for Friday/Monday, just in case...

@Osprey61 don't forget after hours.  I will have all my trading apps up with limit sell orders ready to adjust for whatever happens.

Depending on how all of this works, itcould be to where we have to make a call of how much is enough.  I might sell at $30 and watch it go to $60.

I really want a concrete buyout after hours at 8 pm with a set price so I can get my orders ready.

Stupid Fidelity will not let me set a price to sell above $7.50.  Etrade let's me limit sell order at whatever price I want.

This is what I meant to type

Just set a sell at 5.00 for 100 shares to get at least my money back from MVIS. Will still hold about 185. Dont plan on holding out like last time to watch 300 bucks vanish for months

What do you mean by “reinvest”?  I’m guessing you mean what the buying company offers you in their stock for MVIS stock, and you leave it in their stock?

If so, if there’s a buyout, and you leave it be to where all of the original MVIS stock buys you’d made have surpassed a year, you pay LTCG (long-term capital gains) which are much lower (0-20%, based on your yearly gross income.  STCG are at your current tax rate which is probably 28%+ easily).



Let’s say you bought 1000 shares in August 2019, and 1000 shares in August 2020.

There’s a buyout announced on Friday by what ever company, and MVIS is now risen and valued at $15.00, the trading halts and a deal is inked.

Your august 2019 and 2020 block is now worth $15,000 each in the acquiring company’s stock (so long as you’re awarded stock, and it’s not a cash buyout) totaling $30k.

Now let’s say you feel you don’t want to be so heavily invested in the acquiring company for reasons.  You’d do a “cost of goods” calculation to see how many shares you’re able to sell RIGHT NOW of the new stock that will only incur LTCG...your trader customer service can help you with this calculation, but it’s basically what ever that first 1000 block was.  You then set up your account to sell FIFO.  You make the trade to your settlement fund, another stock, etc., and then you pay what ever the LTCG taxes are for this tax year.  You let the other portion that’s under a year old ride if you like, until it’s matured for a year.

That’s a basic explanation.  Remember, there’s other factors in play, and you may just want to pull it all out.  For example, how does the election look like it’s going to turn out, do you feel the new stock in the buying company is going to do bad, do you need to free up any funds for the next cash cow stock you’re wanting to play?  Those questions and more will need to be asked to see if you’re willing to pay the higher STCG by dumping it now.  

Remember, this is an example of a stock-for-stock deal.  Cash changes things, I don’t want cash right now.

To further muddy the waters, read into Osprey61’s speculative scenario above and try to wrap your head around that.  These things aren’t always cut and dried.

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ETA: depending on how Thursday goes I’ll probably adjust the limit order down to $30. I don’t want to get greedy.

I mean, why not?

Oh LAWD!

If your trade executes, that means we’re all going to be coke addicts with pinkeye from midget stripper buttholes!

I could pay off my house.  

Fuck that!  I’d just burn mine down and start over!

The post above that mentioned $60 a share & not being able to submit it with their broker got me thinking, why not? LOL.

Also there’s a real chance a short squeeze will drive price higher than a buyout. That explanation about Kodak made sense. I thought it was all FOMO & rampant speculation, but a Short squeeze makes more sense to drive the price up into loony tunes status.

Anyone know when short contracts expire or when the possible squeeze occurs with MVIS? Is it Friday like Futures?

Because Fidelity is asshoe!

The squeeze has me worried, only because I’d be afraid to push the button to sell even at $60...not knowing where the buyout might level out at.  Foolish of me, I know.

The few times I’ve felt like dumping it, I would have made out like a bandit with the buys back in and really furthered my holdings.  FOMO works both ways, because I feared missing out on a buyout so I’ve held everything the whole time.

This.

I wanted to move my accounts but figured that would end up locked out when something is announced.  Once MVIS pops, I'm moving over to E trade.

I only have about 160 of MVIS.  If it pays for the $500 in fence repairs I have scheduled for Thursday I'm good.  If it goes to zero I'm good as well.  Many years ago I used SprortSouth to pay for my Batchelor party in Vegas.  The marriage is long since gone but that was the best trade I ever made....

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LOL, and I thought I was being greedy at $10.

If I had been following as early as most of you guys I would have either just kept buying the dips or swing traded until it looked like better chances of a buyout. Hard to say as I’m not as emotionally invested.

The last month seems to be signaling the window is rapidly shrinking.

I'd sell at 60 and not even look at the price again.  It could go to 160 ten minutes later, and I wouldn't even know to give a crap.  

$50 is my magic number. Even with CG, I could lower my monthly overhead by about $1,500 a month 16 months sooner than I am planning. I’ll hold and ride it all the way up, but my stop loss is going to be $50. I only have 1,100 shares, but they’re free.