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Ethanol Stock
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Tim in WI
Posted 3/28/2007 07:24 (#126881 - in reply to #126749)
Subject: How I would look at it



Embarrass WI

You bought in at $1.50. You have rec'd $1.61 in dividends. Means to me that the stock has returned 100%+ of your investment, therefore you have no money invested into it. Keep it, cash any more dividend checks that come along, and make the land earn it's own way.

Edit:Also, if you sell the stock for land payment money, you will have to pay tax on the gain. Capital gain tax is only 15%, but that will reduce the net gain. OR, if you believe cap gain rates are going to go up, now might be the time to sell?

When you took the land loan, you must have had repayment figured out. I would certainly sell the stock rather than lose the land to foreclosure, but I don't think that is what is happening. Selling an asset to pay off a loan is like taking money out of savings to pay a loan payment...doesn't gain you anything. Just seems to me like taking the easy way out, and my experience tells me that usually the easy way in the short term bites you in the long run.



Edited by Tim in WI 3/28/2007 08:09
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