No I didn't but I'm guessing that even after taking that into account BHP has still been one of the worst blue chip investments you could have made over the last five years - and this is in a bull market, imagine the losses in a bear market
I bought in at $16.74 but I just got lucky. I tried to buy in at $29 but hadn't done the CHESS paper work so wasn't able to that day. just one of those things.
Some commodity companies are not generating any cash flow at all.
BHP UK had good run in September. There were few commodity stocks globally they also had some run. It may be mainly due to current bull market. Some were very short lived as they were speculative driven. Post-Brexit UK gave some good returns. It became a winner in Europe. In other words it outperformed other European markets.
Different indexes in UK one month return: 2.63% to 3.97%
One year return: 10-12%
Many commodity oriented companies will have to wait for some time to generate some cash flow. Strong ones can have demand provided they have value and long term prospects. Next year we can see further fall in commodity prices. Inventory levels are very high for some commodities. Chinese demand is also weak. Still there could be short term speculative driven rally for some commodity. I believe Fed should begin their next rate hike in 2017. Although I expected rate rise in December, I have a doubt about it now. I expect very weak market for gold in 2017. We should see very hot USD by 2018/19.
Originally Posted by Bobdn
No I didn't but I'm guessing that even after taking that into account BHP has still been one of the worst blue chip investments you could have made over the last five years - and this is in a bull market, imagine the losses in a bear market
I bought in at $16.74 but I just got lucky. I tried to buy in at $29 but hadn't done the CHESS paper work so wasn't able to that day. just one of those things.
How has anyone holding BHP on capital account treated the South 32 demerger for tax purposes in their 2016 income tax return.
My understanding that it is to be treated as a dividend based on $2.41NZ a share.
The NZSA was protesting this with IRD but I haven't heard anything further. http://www.scoop.co.nz/stories/BU150...shares-tax.htm
No one has returned the income on their South32 shares??
No one owned BHP shares at that time??
No one gives a f**k??
I fall into your second category, Aaron. (See post 153), wasn't prepared to risk the potential tax liability. Still keeping the company under review but not tempted back in at present.
I fall into your second category, Aaron. (See post 153), wasn't prepared to risk the potential tax liability. Still keeping the company under review but not tempted back in at present.
Same for me - sold out prior to the demerger to conserve capital. Didn't look back (so far).
Re IRD treatment ... I understand that the NZSA is still on the issue - and that there is agreement from government side that it is unfair to treat demergers as income and to change the tax rules accordingly. Don't know, though whether the issue passed already all necessary political and bureaucratic hurdles - and neither whether any change would be retrospectively applied to the BHP demerger.
If you are effected (I am not ...) why don't you check with IRD (and potentially NZSA) and report back?
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
Same for me - sold out prior to the demerger to conserve capital. Didn't look back (so far).
Re IRD treatment ... I understand that the NZSA is still on the issue - and that there is agreement from government side that it is unfair to treat demergers as income and to change the tax rules accordingly. Don't know, though whether the issue passed already all necessary political and bureaucratic hurdles - and neither whether any change would be retrospectively applied to the BHP demerger.
If you are effected (I am not ...) why don't you check with IRD (and potentially NZSA) and report back?
I can't find anything that says the rule changed so I would assume it is taxable income.
I was a member of the NZSA a couple of years ago but found they were doing important advocacy work on behalf of small shareholders and I wasn't really reading it(too educational). I prefer shorter sentences like, "It is all blue skies from here man" or " Toot toot all aboard" or "This one's going to the moon baby". I should really renew my membership because they are the only ones who will rock the boat in the corporate world. I always wondered why CEO's salaries were so crazy high but I assume fund managers and institutional investors get paid pretty good as well and directors are on a pretty good gravy train so no-one wants to rock the boat on ridiculously high remuneration.
In regard to contacting IRD, getting hold of someone who would actually know the answer would probably be a challenge.
Reply With Quote
Originally Posted by Bobdn
Bookmarks