Hi Michael, any thoughts about today's note from Pelham Investments about Nickel 28? They seem to be claiming that management paid themselves about $22M in 2022, am I reading that right? That would be 25% of the entire market cap of Nickel 28.
I have a good sized holding, about 2/3 in a margin account. My cost basis is under $9, should I sell it prior to the spin off?
Im concerned that it converts my Capital Gain into a dividend. I was burnt on the Home Cap takeover where it was mostly paid out as a div giving me a cap loss, and also on Summit REIT where the take over was paid out as interest. Read the Prospectus folks and if any doubt, sell it..
The details of the deal suggest a portion of the dividend is "return of capital" which is untaxed. I hold some of position in TFSA and RIF accounts. Your tax calculation looks a bit high to me but I agree it is a factor. Do you factor in tax on unrealized gains in making comparisons?
Based on my limited past experience, broker will just T5 me the full amount under eligible dividend. I'd rather sell it before distribution and buy back later. capital gain tax is much easier to manage.
If you hold it in registered account, then it is fully tax shielded.
Logan is about to debut, what's your opinion of the value of the assets and the Co today?
Hello Michael, Spartan trading halted today: do you have any information what is going on?
Hi Michael, any thoughts about today's note from Pelham Investments about Nickel 28? They seem to be claiming that management paid themselves about $22M in 2022, am I reading that right? That would be 25% of the entire market cap of Nickel 28.
I have a good sized holding, about 2/3 in a margin account. My cost basis is under $9, should I sell it prior to the spin off?
Im concerned that it converts my Capital Gain into a dividend. I was burnt on the Home Cap takeover where it was mostly paid out as a div giving me a cap loss, and also on Summit REIT where the take over was paid out as interest. Read the Prospectus folks and if any doubt, sell it..
Question: When do you have to hold SDE shares in order to get the $9.50/share special dividend?
Read through the release, and I believe as long as the deal goes through after passing through the regulators, seems worth the risk?
No idea. Dividend depends on deal being approved at a shareholder meeting May 10th or so. Dividend date will follow.
I'd discount the dividend with tax personally, which is about @2.38in tax, so current price is about more or less fully valued.
The details of the deal suggest a portion of the dividend is "return of capital" which is untaxed. I hold some of position in TFSA and RIF accounts. Your tax calculation looks a bit high to me but I agree it is a factor. Do you factor in tax on unrealized gains in making comparisons?
Based on my limited past experience, broker will just T5 me the full amount under eligible dividend. I'd rather sell it before distribution and buy back later. capital gain tax is much easier to manage.
If you hold it in registered account, then it is fully tax shielded.
Tax rate used is 2023 top tax rate.