| To: Murrey Walker who wrote (24377) | 4/14/1999 12:17:00 AM | | From: jach | | | | |
CSCO seems to be very weak today although the mkt as a whole was pretty strong except small dip for nasdaq. This does not bode well for CSCO going forward. Look for the price to come down, and if the mkt turns bad, CSCO can hit 105. All imo. |
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| To: Tim Luke who wrote (24379) | 4/14/1999 9:13:00 AM | | From: Murrey Walker | | | | |
Just can't help it, Tim...the J'ster has created such an aura of negativism in his/her postings throughout SI, you are pre-conditioned to not reading the posts with an objectivity in mind. In other words, he has turned himself into a “Vapor–poster”! |
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| To: Jay Fischer who wrote (24390) | 4/14/1999 11:51:00 AM | | From: Big Blue | | | |
CSCO may have paid a significant price for a Strategic Asset, GEOTel for $2 bil, However, examining what IBM paid for Lotus and Tivoli, over the past few years, is the investment sound? Yes, Tivoli and Lotus Sales both Skyrocketed moving Lotus into contention for the number one email system, and number one groupware application product. In addition, Tivoli's sales increased from the 10's of millions to Billions becoming the leading system management company by far.
In addition to what I hear about significant OEM hardware sales growth this quarter, and the fact that CSCO is expanding their workforce by 20,000 employees, this is an updated figure from my previous information, which I prefered to error on the side of conservatism. I expect CSCO to be a near $15Billion company by the end of this year.
I agree with the post this is attached to, CSCO will see 130 by next week or shortly after earnings, and split info from the following Monday April 26.
All IMO <G> |
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| To: Techplayer who wrote (24385) | 4/14/1999 1:05:00 PM | | From: The Phoenix | | | |
Each security you own has a cost associated with it. If you purchased AMT options then you also have a tax consequence associated with it. When you sell those options you exhaust that consequence and MUST be credited with taxes paid - period. There is no other way around this.
So, if you had an option - say at $10, exercised at $50, you paid AMT on $40. Then you hold for a year and sell at $100. You pay capital gains on $90 but MUST be credited back the AMT tax paid on the $40. You can not disassociate these taxes from this security and allocate to a future date. See what I mean?
OG |
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| To: The Phoenix who wrote (24396) | 4/14/1999 1:35:00 PM | | From: Techplayer | | | |
Gary,
Thanks, but this is not entirely true in a real world application. Total income plays into the equation. AMT is more convoluted than this and is not 100% tied to the trade of a specific block of equity when it comes time to exit. I avoided AMT for awhile but now have been contributing for 3 years. My accountant tells me that I will eventually get it back but for now consider it a loan to the govt.
fairmark.com
AMT Credit
Here's good news: a portion of your AMT liability — perhaps all — may reduce the tax you pay on future tax returns. Working with this AMT credit is a two-step process. First you find out how much credit is available, then you find out how much of the credit you can use.
Find the Available Credit
The first part of your task is to find out how much of the AMT liability from a prior year is eligible for the credit. This involves calculating the alternative minimum tax under a different set of rules — sort of an alternative AMT. What you're doing here is finding out how much of your alternative minimum tax liability came from timing items: items that allow you to delay reporting income, as opposed to items that actually reduce the amount of income or tax you report. If you're lucky, your entire AMT will be available as a credit in future years. But some people find that only a small portion, or none at all, is available for use as a credit.
Determine How Much AMT Credit You Can Use
If you have some AMT credit available from a prior year, you have to determine how much of the credit you can use in the current year.
**** You can only use the AMT credit in a year when you're not paying alternative minimum tax.******
The amount of credit you can use is based on the difference between your regular tax and the tax calculated under the AMT rules.
Example: Suppose you have $8,000 of AMT credit available from 1997. In 1998 your regular tax is $37,000. Your tax calculated under the AMT rules is $32,000. You don't have to pay AMT because your regular tax is higher than the tax calculated under the AMT rules. Better still, you're allowed to claim $5,000 of AMT credit, reducing your regular tax to $32,000.
In this example, you would still have $3,000 of AMT credit you haven't used. That amount will be available in 1999. In tax lingo, it's carried forward.
Of course, you can't claim more than the amount of the available credit. In the example, if the AMT credit available from 1997 was $2,700, then you would use the full amount of the credit in 1998. You would reduce your regular tax to $34,300 — not all the way to $32,000.
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