tag:blogger.com,1999:blog-7294165939647321702.post6923686283628490868..comments2024-03-28T13:45:43.362-04:00Comments on <center><a href="http://www.barelkarsan.com">Barel Karsan - Value Investing</a></center>: Profiting From NOLsSaj Karsanhttp://www.blogger.com/profile/04493152766022812984noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7294165939647321702.post-16346699348655700292011-07-13T12:18:47.836-04:002011-07-13T12:18:47.836-04:00I think Prxi should be ok for the next month. Desp...I think Prxi should be ok for the next month. Despite somewhat weak management. <br /><br />They never mention sharebuybacks in their calls. Even though it is the most important thing they do for shareholders.<br /><br /><br /><br />trondAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-15990946315011830112010-09-23T00:03:38.402-04:002010-09-23T00:03:38.402-04:00Saj,
Great Blog ! What do you think about $PRXI ?...Saj,<br /><br />Great Blog ! What do you think about $PRXI ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-56717901297675449892010-09-22T12:51:13.405-04:002010-09-22T12:51:13.405-04:00Thanks Anon!
Where did you get the 20 years figur...Thanks Anon!<br /><br />Where did you get the 20 years figure from? Is that just an example of the NOLs useful life?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-10578073498814907842010-09-22T10:30:32.264-04:002010-09-22T10:30:32.264-04:00You can't use NOLs in the US like you can in C...You can't use NOLs in the US like you can in Canada. Section 382 prohibits use of NOLs by other parties thru a change in control provision. So you can't simply sell the co. to someone who wants to sue the NOLs. It's not that simple.<br /><br />Not so in Canada, which I believe you're from and maybe more familiar. In fact, Bell Canada Int'l sold their business and their NOLs and it ended up being a very good liquidation.<br /><br />Now, when talking about ADPT, one of the knocks has been that Steel has a history of sitting on shells for years. I'd venture a guess that this won't be the case here because they've committed close to $100mln in cash to this shell. They don't manage billions anymore. Something's up. I can smell it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7294165939647321702.post-64344200501026529162010-09-22T09:40:55.302-04:002010-09-22T09:40:55.302-04:00Can't freely use NOLs in change of control sit...Can't freely use NOLs in change of control situations anymore:<br /><br />More specifically, if as a result of a stock transfer or a reorganization, a corporation undergoes an “ownership change,” Code Section 382 limits the corporation’s right to use its NOLs each year thereafter to an annual percentage (for May 2009, the federal long-term tax-exempt rate is 4.61%) of the fair market value of the corporation at the time of the ownership change (the “Section 382 Limitation”). For example, if a corporation with current NOLs of $20 million underwent an ownership change this month, and assuming that the value of the stock of the corporation is worth only $5 million, the corporation’s annual Section 382 Limitation is $230,500 ($5,000,000 x 4.61%). Over twenty years, the maximum amount of NOLs that the corporation will be able to use is now $4,610,000 ($230,500 x 20 years), effectively losing a NOL tax asset of $15,090,000.<br /><br />http://www.gibbonslaw.com/news_publications/articles.php?action=display_publication&publication_id=2754Anonymousnoreply@blogger.com