- Jun 10, 2004
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Shares have to be "wholly worthless" for you to get the write-off. The IRS has never really clarified the principle behind that statement. If shares are .01 that is about the only way. Best bet is to sell them and then take the loss.
Haven't really been in here in a while. Wanted to say congrats to azurik on RMBS he has been completely right on the stock. I got out way to early on my options (around even money) but the HGSI lottery ticket netted close to $3/4MM.
A few things to take note of: HGSI has started to accumulate quite a bit of put volume. One of the things that has driven HGSI up as much as it has are the number of people attempting to short and also the number of people that have purchased calls that purchased the stock. You could start to get into a situation where the shorts will overpower the longs.
There is really not a whole lot of big newsworthy negative events for RMBS, although there could be some positive surprises. It may be beneficial to place a stop possibly tight on the stock. This would allow those with gains to keep holding the stock while still having exposure to the upside and limiting your exposure/gain should there be some poor newsworthy events and you are not on the terminal.
One simple question...can anyone make the argument for gold to me? I have never been a gold bug. I simply do not understand gold unless you are in an inflationary environment. I would much rather purchase some foreign government issued/denominated notes that are inflation linked than gold. I am simply not a huge fan of purchasing the most levered investment on the planet then also having a negative roll yield on it.
A few things to take note of: HGSI has started to accumulate quite a bit of put volume. One of the things that has driven HGSI up as much as it has are the number of people attempting to short and also the number of people that have purchased calls that purchased the stock. You could start to get into a situation where the shorts will overpower the longs.
There is really not a whole lot of big newsworthy negative events for RMBS, although there could be some positive surprises. It may be beneficial to place a stop possibly tight on the stock. This would allow those with gains to keep holding the stock while still having exposure to the upside and limiting your exposure/gain should there be some poor newsworthy events and you are not on the terminal.
One simple question...can anyone make the argument for gold to me? I have never been a gold bug. I simply do not understand gold unless you are in an inflationary environment. I would much rather purchase some foreign government issued/denominated notes that are inflation linked than gold. I am simply not a huge fan of purchasing the most levered investment on the planet then also having a negative roll yield on it.
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Congrats on HGSI.
Same reason why real estate went up - everyone's buying it, and as long as there is FUD saying how the USD is being printed like crazy and the Fed will not be able to pull back without killing the economy, it will go up. Along with the fact that the chinese and indians are buying.
Not saying it's tulips but there is that fear that the USD is no longer reliable in storing wealth.
I understand every argument about the USD, having said that there are 109109101 other investments I would jump in before gold. Buying gold is buying a currency that has no chance of ever being a reserve currency, is extremely leveraged and has a NEGATIVE YIELD.
You are preaching to the choir. I suspect Gold will hit $2k before crashing down. But right now the trade is buy anything that's not USD.
BTW i'm long UGL call options. Gotta take advantage of gold bubble.
Slew Foot
Lifer
- Sep 22, 2005
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I'm stilling holding onto my HGSI gains. Nowhere close to $3/4MM (more like 15k, lol but that's a ton for me), but the stock seems to have been holding pretty strong? Even after several rounds of dilution the price keeps going up each time.
Is there a reasonable way of evaluating how 'bad' it could become? Maybe I should buy puts and/or sell calls on my holdings... I am kind of hoping to hold onto HGSI to avoid short term taxes.
Open an account at interactive brokers or another prime brokerage and buy a Bloomberg terminal.
Taxes are the last thing you think of an investment. If you have a gain take the gain and buy calls to increase your basis. Then you haven't missed out another leg up.
What are you buying? S&P just changed Greece's and Portugal's sovereign debt rating outlooks to negative.
Well if I have to pay 30% vs 15% on taxes, then in expectation I could allow a 7.5% drop (assuming uniform distribution) and not really care, I think?
As for buying calls, can you tell me if I'm understanding your advice correctly:
Suppose I invested $10k in stock X at $20 which is now at $30.
You are suggesting that I sell $10k (the gain) and purchase calls at... $30 strike? Is there a rule of thumb for how many calls to purchase? What about the time horizon?
Is the idea that purchasing calls means if the stock goes up further, I can sell the calls or use them to purchase additional shares & realize some gains? What if the stock goes down? Like if (in the above example), I purchase calls at $30 strike price and the stock subsequently falls to $25, couldn't I stand to lose a lot more than if I had simply held on to my shares?
EU Reaches Deal With Rambus On Memory Chip Royalty Rates
http://online.wsj.com/article/BT-CO-20091209-703961.html
BRUSSELS (Dow Jones)--The European Commission Wednesday said it has reached a deal with US technology firm Rambus Inc. (RMBS) in a dispute over the royalty rates that the firm charges for patents on computer memory chips.
The deal will see Rambus cap its royalty rates on dynamic random access memory chips, which temporarily store data. Rambus has agreed to charge no royalties for two earlier chip standards and just 1.5% for later generations of the standards.
Rambus currently charges 3.5% for using this technology.
http://online.wsj.com/article/BT-CO-20091209-703961.html
BRUSSELS (Dow Jones)--The European Commission Wednesday said it has reached a deal with US technology firm Rambus Inc. (RMBS) in a dispute over the royalty rates that the firm charges for patents on computer memory chips.
The deal will see Rambus cap its royalty rates on dynamic random access memory chips, which temporarily store data. Rambus has agreed to charge no royalties for two earlier chip standards and just 1.5% for later generations of the standards.
Rambus currently charges 3.5% for using this technology.
Is this good or bad news for rambus, they will make less money but no fine. I guess this is market neutral news, but if you are pro rambus, you will say this is good news, or vice versa.
I bought some 22.50 jan calls last week at 1.75. Should be in the money today.Is this good or bad news for rambus, they will make less money but no fine. I guess this is market neutral news, but if you are pro rambus, you will say this is good news, or vice versa.
looks like it's positive news. RMBS up 6% premarket.
- Jan 23, 2002
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Is this good or bad news for rambus, they will make less money but no fine. I guess this is market neutral news, but if you are pro rambus, you will say this is good news, or vice versa.
This is good news for Rambus, whether you are pro or anti Rambus. Rambus had problems licensing their patents, but this is more pronounced in Europe where a bunch of companies have challenged validity. This settlement essentially is an acknowledgement from the Europeans that the patents are valid, and was reach after discussing with "several" memory manufacturers if the terms were fair. Yes, Rambus caps the maximum royalty, but it's a win/win situation for all parties. Now lets hope that the companies that discussed this with the EU signs through with licenses in the coming months.
To understand the implications of this deal, put yourself in the shoes of one of the tens, if not hundreds, of European companies that have ignored Rambus payments from the beginning. With this EU sanction, a company that makes or sells electronics (computers, smart phones, TV's, set top boxes, etc) using Rambus technology (DRAM & controllers) within the EU jurisdiction, is now infringing by DEFAULT. Litigation should not be *required* to get the big dogs to step up to the plate and pay now. No doubt some companies will need a bigger push than others.
Rambus will offer everyone a 5-year license for 1.5% for current DDR/GDR current generation RAM and 2.5% for controllers. This evens the playing field for all manufacturers and they won't fear that their license is worse than someone else's. It's unfortunate that so many companies were colluding to end Rambus as a company, and they had to take this deal ultimately, but folks, we're in a much much better situation than we were a couple years ago with regulators down our throats. Rambus embarassed the FTC and now we are finished with the EU. The important thing is FUTURE generations are not capped at this rate, nor are their XDR products.
IMHO, this has been known for a while and is already priced in a little by RMBS investors. The AT trial starting in January 11, 2010 and any related events from that should be the key focus for everyone.
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- Jan 23, 2002
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