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Thanks for your feedback .Must say you dont seem too wacko to me!

I checked out the current projects on the webpage and have decided I will buy in.My decision was certainly helped by knowing they now have $2,500,000 for project development.

How Long Term do you consider RMS to be?




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How long term? Well i really cant answer that...but long term to me usually means AT LEAST 1 year (for discounted capital gains tax).


As todays price action showed, doesnt take much to move this up or down significantly...but its hard getting out...or in.


If you really want some, id be putting in a fairly low bid and in the absence of any announcements hoping you get them...then it might fall further but at least you got in cheaper.


But yeah like i said, this goes down another stock goes up...so its a zero sum game...until one hits the big time.





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I dunno. If you hang on because you have a belief the company is going to give you some good capital gains and/or dividends then sure hang on. If you simply hang on because you'll get the 50% tax rebate then that could be self defeating.


Let's say you're in the top marginal rate which we'll round off to 50% for simplicity then you'll pay 25% of your gain in tax. If you hold for a really long time you may find it is marginally more beneficial to use the indexation method calculation. ie no discount but you get to allow for inflation, sometimes this works out better.


OR you could do it the easier way and form a company. Will cost you about $1,000 or less and some $300 - $500 per annum in accountancy and government charges.


Then you have a fixed tax rate of 30% with no 12 month discount so no benefit in holding longer other than that associated with holding a company which genuinely should be held longer.


OR you could make the company a superannunation fund and therefore there is only a 15% tax rate but you can't touch the money until retirtement without penalties.


OR you form the company and make it the trustee of your discretionary family trust in which case you can distribute profits to the company or any members of the trust depending on which combination will incur the lowest tax.


It all depends on how much tax you're paying. If you're like SandyBeaches or Haspete and earning 10 or 12 million bucks a week from trading then you should consider it. If your total market stake is 20 or 30 grand then don't bother.


With any of the above your company costs, internet, computer, phone, vehicle, stationery, travel (to AGM's), accomodation, vehicle hire, literature, subscriptions, swedish masseuse etc become legitimate deductions for your company before you determine what your "profits" are and therefore taxes owing.


I'm not an accountant only a humble Engineer but it seems to me that it may be worth your while talking to your accountant about these options.

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IN REPLY TO A POST BY lord elpus, Tue 30/03/04 07:36pm

No i hold on because of my research...tax is not a factor...if im up, but i change my mind about the company, i will sell, even if 10 days later.


With regards to tax, i believe can no longer use indexation, unless the asset was bought with a certain period, already past...its either full gains or half gains from now on. I cant recmember what the cut off date was.


With companies, its a bit mroe difficult than that...you need to repatriate the funds out of the company...usually as a franked dividend...but that meas u end up paying ur full tax anyway. There are ways to structure this so it doesnt happen, but pointless, if you hold greater than a year, you pay less tax individual based.


Super fund a NO NO...dont forget surcharge rate, excessive tax component if you exceed RBL thereshold ETC...earnings go into post 83 or pre 83, not undeducted conts (i work in super and advise on it, take my word for this). Not to mention the costs of running an SMSF etc...and then preservation the big killer.


The discretionary trust can also be a dangerous scheme, specially with retrospective laws being made every day, lets not forget when govt tried to change the tax laws for it, squashed by labour. And then there the trustee obligations etc...it is a scheme worthwhile looking into, but not for me...i did have one though with two propertes through it, that didsave me a bit of cash...useless for short term investments though if you are making a heap,. as only a marginal tax saving, not worth the annual fees etc.




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and one more thing on Super...the capital gains discount is only 33% after 1 year, not 50% as for individuals...


Anyway lets get this back onto the topic of RMS, i have enough financial stuff to deal with at work http://www.asxboard.com/html/emoticons/lmaosmiley.gif



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Getting back to RMS I noticed from the announcement this arvo that the chairman Robert Kennedy took up his rights offer. 1,574,300 of them at a cost of $173,173.

He obviously has a lot of shares anyway however I find this very positive.He could have just made a token gesture and bought a few.


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Cdchi1, I also see RMS as good longer term spec, along with BRW as well. I hold both. I'm curious about your post on 29/3 where you refer to owning 13 mining stocks.


If I'm not being too rude, what 13 mining stocks do you own?


I also have various stocks (mostly mining) which I hold/trade/change depending on my mood, which for those interested are: AUM, AVO, BRW, CRD, CRS, DLS, GBG, INL, MBG, MIL, PNA, QGC, RMS, and SIE.



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Hi Alarmist...


Well its less now as ive sold quite a few (eg BSG and MBG) to buy more IGO...current mining companies held, in order of value, are:




RMS has been quite week recently, as i said a couple posts ago, with the current market depth, and the right issue, you'd have to be a bit insane buying in right now...i think you might be able to get them sub 10c.


I bought the majority of mine at 11-12c incl rights...but happy with the long term picture.


Todays ann was a bit ho hum, but as i indicated in an earlier post, its primary objective wsa to do shallow depth testing to identify which targets ahd potential...which it did excluding a couple targets, and pinpointing others for further deeper drilling.


I wouldnt expect much out from RMS over the next couple weeks.


Note, apparently Blue Hills has really got the company excited, but i think its a little way off before we see any results from there.


I would like to see them extend the black cat and wattle dam gold resources too.


Good luck if your a short termer and holding, ur going to need it...as for long termers, if you buy some make sure you're diversified...remember, for every spec miner 1 out of 10 (probably less) makes it...



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Gees if i wasn't such a long termer this would be looking like a great tax writeoff at 30 June for igo gains.


Don't see much coming out from them in the short term, apart from deeper drilling results in may, and their quarterly.


Looks like Blue Hills, although exciting, is a little way off from any action.


Maybe some black cat and wattle dam drill results will come out.


Maybe i should just delete it from my watchlist and relook at it in a couple years time to see if i have any dough left http://www.sharescene.com/html/emoticons/mad.gif , or have made a killing http://www.sharescene.com/html/emoticons/tongue.gif





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