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A question for the Stock savvy....


rocknrobn26
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I own about 100 shares of United Airlines. :D Yeah, I know. They are supposed to come back on the Nasdaq exchange under UAUA symbol.

Does that mean I lose everything? Are my stocks worth anything? Should I sell now?

This stock stuff just drives me :D !

 

Any help/advice would be appreciated!

Edited by rocknrobn26
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I own about 100 shares of United Airlines.  :D Yeah, I know.  They are supposed to come back on the Nasdaq exchange under UAUA symbol.

Does that mean I lose everything?  Are my stocks worth anything?  Should I sell now? 

This stock stuff just drives me  :D !

 

Any help/advice would be appreciated!

 

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They usually transfer in exact worth to the new symbol. Whoever you trade with should be able to help you.

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I would imagine they are worth something although we know how good airline stocks have been as of late if your name isn't Southwest. If you have any other investments such as a mutual fund or a brokerage account, give them a call and ask. It cannot hurt and they should have some information for you.

 

Dumping United may not be a bad thing assuming you reinvest that money elsewhere. It's could come back up, but it's more of a matter that there are better stocks for you to invest your money in and get better returns. One of the biggest mistakes people make is they get stubborn on losing stocks and feel as if they are "losers" if they sell when a stock underperforms. The fact is, a bad stock is a bad stock and it's kind of like cutting off your nose to spite your face if you hold onto a widely known loser.

Edited by TDFFFreak
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you might be screwed...usually common stock holders are the last ones in line to get anything when a company goes bankrupt or restructures....

 

from what i can see on page 3....common stock holders will get nothing in the restructure....but check with your institution to make sure

 

http://www.pd-ual.com/downloads/SummaryofR...Code_102705.pdf

Edited by dmarc117
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you might be screwed...usually common stock holders are the last ones in line to get anything when a company goes bankrupt or restructures....

 

from what i can see on page 3....common stock holders will get nothing in the restructure....but check with your institution to make sure

 

http://www.pd-ual.com/downloads/SummaryofR...Code_102705.pdf

 

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Figures. Oh well, the rest of mine are ok, so I guess I just declare the loss next year.

 

Edit for:

 

It's now worth $0.10/share! :D:D

Edited by rocknrobn26
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There could be some tax advantages to selling. You can deduct a few thousand dollars of capital loss against ordinary income each year. I think you get like 5 years to carry the loss over before it becomes useless. So if selling all the stock would produce more capital losses than you can use during that period, consider selling in staggered blocks over the next few years.

 

Or you can hold it until you sell another stock for a gain in order to net the gains and losses and minimize the cap gains tax you have to pay.

 

Or you can do nothing at all. If the stock ever becomes truly worthless, you get a tax deduction for that, too. (But it literally has to be worth $0.00).

Edited by yo mama
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There could be some tax advantages to selling.  You can deduct a few thousand dollars of capital loss against ordinary income each year.  I think you get like 5 years to carry the loss over before it becomes useless.  So if selling all the stock would produce more capital losses than you can use during that period, consider selling in staggered blocks over the next few years.

 

Or you can hold it until you sell another stock for a gain in order to net the gains and losses and minimize the cap gains tax you have to pay. 

 

Or you can do nothing at all.  If the stock ever becomes truly worthless, you get a tax deduction for that, too.  (But it literally has to be worth $0.00).

 

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:D TY soooo much. That's what I'll do. It's virtually a $2K loss. I can wait.

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:D TY soooo much.  That's what I'll do.  It's virtually a $2K loss.  I can wait.

 

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Hey, if you can avoid paying tax on $2,000 of ordinary income THIS year (2006), that at least gives you certain value, though the value will vary with your tax bracket. The upside potential to letting it ride could be more, but is likely a much riskier proposal. Course, if you sell now you won't get that deduction until you file your 2006 tax return in a year or so. So you've got until now and Dec. 31, 2006 figure out when (and if) to sell the stock for the purpose of the federal income tax deduction.

Edited by yo mama
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Hey, if you can avoid paying tax on $2,000 of ordinary income THIS year (2006), that at least gives you certain value, though the value will vary with your tax bracket.  The upside potential to letting it ride could be more, but is likely a much riskier proposal.  Course, if you sell now you won't get that deduction until you file your 2006 tax return in a year or so.  So you've got until now and Dec. 31, 2006 figure out when (and if) to sell the stock for the purpose of the federal income tax deduction.

 

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What I'm thinking is I have all year to make up my mind. I may just sell all of it next year, 'cause it's been pretty stagnant the last year or so. It's not that much $$$ and I have apreciated about 300% in four years (including my losses w/ UAL) w/ little if no risk of losing that in the next year. The deduction would be nice, but the offset for CG, should be better. Does that make sense?

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What I'm thinking is I have all year to make up my mind.  I may just sell all of it next year, 'cause it's been pretty stagnant the last year or so.  It's not that much $$$ and I have apreciated about 300% in four years (including my losses w/ UAL) w/ little if no risk of losing that in the next year.  The deduction would be nice, but the offset for CG, should be better.  Does that make sense?

 

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I think I hear what you are saying.

 

However, my last thought on this subject is this: consider that the tax rate on ordinary income in your case may greatly exceed the tax rate on capital gains. Ignoring the issue of timing for a second, it may be more tax-efficient to use the deduction to offset ordinary income. Course, since were not talking about huge sums of money here, administrative ease and efficiency may be worth more to you than the extra $100 or $200 you'd ultimately pay in tax if you used the loses to offset capital gains instead.

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I think I hear what you are saying. 

 

However, my last thought on this subject is this: consider that the tax rate on ordinary income in your case may greatly exceed the tax rate on capital gains.  Ignoring the issue of timing for a second, it may be more tax-efficient to use the deduction to offset ordinary income.  Course, since were not talking about huge sums of money here, administrative ease and efficiency may be worth more to you than the extra $100 or $200 you'd ultimately pay in tax if you used the loses to offset capital gains instead.

 

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I'm on a pension. My wife will be on a pension as of June. This year will probably be the highest income year we'll have in the near future due to bonus' my wife will recieve, that we don't tax shelter. We're still trying to decide how much to take in cash and how much to shelter in our 403B's.

 

If you'll indulge me one more question/statement:

 

I am NO financial guru by anyone's stretch of the imagination. I put my daughter thru college and paid cash. Yes, I paid everything. The only debt I have is my morgage w/ about 12 years left. Our cars are 5+ & 4+ years old w/ fairly low mileage. We still manage to save $$$ every month and frankly are wanting for nothing. Hell, a couple of people owe me money. :D Long story.

 

Question/statement:

If I sell now vs selling before the end of the year, is there a difference, assuming UAL will do virtually nothing during that time?

 

As I said, investments are so confusing to me, that I can't begin to explain. I think I did well in my life, but I am STOOPID when it comes to this stuff. Thanks for the previous info and anything you can provide on the above question.

 

Sorry if I sound dense on this stuff, but I am! :D

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I bought a bunch of Lucent stock at $60 a share!! :D Then sold it at $8 a share! :D I had bought a bunch of bonds for a song in Healthsouth! :D And sold them for about the cost of the paper they were written on! :D I have had my share of wins too. But you never forget the big losses...

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Question/statement:

If I sell now vs selling before the end of the year, is there a difference, assuming UAL will do virtually nothing during that time?

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Assuming the stock does not pay dividends, you'd be no better or worse off if you sold the stock today or Dec. 31 (assuming the value remained the same). At least, I can't see any reason it would make a difference.

 

The main difference would come when you were preparing your '06 return. At that time you would elect how you wanted to use the loss: deduct it against ordinary income, or capital gains, your choice. You could run the numbers and go with whatever got you the best result.

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Assuming the stock does not pay dividends, you'd be no better or worse off if you sold the stock today or Dec. 31 (assuming the value remained the same).  At least, I can't see any reason it would make a difference.

 

The main difference would come when you were preparing your '06 return.  At that time you would elect how you wanted to use the loss: deduct it against ordinary income, or capital gains, your choice.  You could run the numbers and go with whatever got you the best result.

 

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Very good advice and I appreciate it more than you will ever know!

:D Thanks YO, for your comments and time that you gave me. I have some chit to think about now!

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