Overlords Investment Conclave [OIC] Recruitment Thread

LawBeefaroni · Post by **LawBeefaroni** » Wed May 18, 2022 3:44 pm

The foreign tax credit is intended to relieve you of the double tax burden when your foreign source income is taxed by both the United States and the foreign country.

The foreign tax credit can only reduce U.S. taxes on foreign source income; it cannot reduce U.S. taxes on U.S. source income.

It is generally better to take a credit for qualified foreign taxes than to deduct them as an itemized deduction. This is because:

A credit reduces your actual U.S. income tax on a dollar-for-dollar basis, while a deduction reduces only your income subject to tax,
You can choose to take the foreign tax credit even if you do not itemize your deductions. You then are allowed the standard deduction in addition to the credit, and
If you choose to take the foreign tax credit, and the taxes paid or accrued exceed the credit limit for the tax year, you may be able to carry over or carry back the excess to another tax year.

Forbes guide:

The concept with tax credits is that you shouldn’t have a double tax burden when you cross a border. If you work in New York and live in New Jersey, New York will take a piece of your salary. When you file your New Jersey return, New Jersey gives you a credit for the tax it imposes on that salary.

So, too, if you collect a $1,000 dividend from a French drug company, France will nick you $150. If you’re in the 15% federal bracket for dividends (most dividend recipients are) and if the dividend is “qualified” (most of big-company payouts are), then you owe $150 of federal tax. You should be able to fully credit the French tax against the U.S. tax, so that there’s no double duty.

Except that this is not necessarily what happens when the numbers are cranked into the IRS worksheets. The baroque rules for claiming the foreign tax credit mean that you might get full credit for what you already paid, or you might get only half, or you might get less than half.

Pyperkub · Post by **Pyperkub** » Tue Jun 07, 2022 1:01 pm

AMZN split 20-1 yesterday. Now at around 120-122/share.

Doesn't mean a ton, but this is definitely in my OIC wheelhouse, as indicated upthread...

"Psychologically, it doesn’t feel good to spend $1,000 and own a third of a share," he said.

pr0ner · Post by **pr0ner** » Tue Jun 07, 2022 1:52 pm

Pyperkub wrote: ↑Tue Jun 07, 2022 1:01 pm AMZN split 20-1 yesterday. Now at around 120-122/share.

Doesn't mean a ton, but this is definitely in my OIC wheelhouse, as indicated upthread...

"Psychologically, it doesn’t feel good to spend $1,000 and own a third of a share," he said.

I know in real money terms it doesn't matter, but I am psychologically more likely to buy 30 shares at $120 than 1.5 shares at $2400, so I agree with that premise.

LordMortis · Post by **LordMortis** » Tue Jun 07, 2022 3:17 pm

If you play with options it does matter and options do move prices and offer you more... options... For smaller investors it's much easier to pay $12,000 for 100 shares and work with one option than is it is drop $12,000 for 5 shares.

That said, even when I was buying rather than holding $12,000 was still too much for me to put in anything that wasn't an index fund. Though for Amazon, when it still seemed like they were the only game in town for reasonable ecommerce and one of two big players for Internet hosting, I might have been tempted to find a way irrespective of valuation.

xwraith · Post by **xwraith** » Tue Jun 07, 2022 6:52 pm

Going to ramble for a bit,

So, KSS (Kohls) is selling themselves and it looks like the buyer could be FRG (Franchise Group, Inc). I don't own the stock, but I do own their bonds. Even with interest rates going up on their bonds I'm still up a bit on bond value -- though I just saw that they got put on credit watch by S&P which is a bit concerning and could erode my margin a bit firther. I'm just a week or so out until the next coupon payment and I'm thinking of selling it all. Would there be a reason to hold though? If acquired the new owner has to continue to pay the debt, but it sounds like their plan is to sell and lease back real estate that Kohls has and use that to offset their cost to purchase. I'm wary of that situation and the possibility of default. Which is a pity, I had a nice high yield and the bond wouldn't mature for over another decade. Rotate the cash back into stocks I guess.

Chraolic · Post by **Chraolic** » Sat Jun 11, 2022 5:57 am

I bought a few hundred Embracer stocks when they went on their shopping spree last month, and since then they're up 40% and have recently secured a billion dollar investment so I guess maybe I made a good choice for once, so that's a nice change.

Carpet_pissr · Post by **Carpet_pissr** » Sat Jun 11, 2022 5:35 pm

Last year when I was considering where to put some available cash into something stable-ish, and not wanting to just keep dumping more into existing index funds (why not?!), I decided to use MMM and BMY as my "safe", "never sell" alternatives. MMM did not work out so well (although I should do the math considering divvies), and BMY has worked as expected (outperformed really). Down about 20% on MMM (not including the fat divvies), and up about 22% on BMY (also not including div).

So they probably come very close to just canceling each other out. I'm guessing with dividends I'm up a few points maybe?

Too much work to try and figure out where I would stand if I had gone with initial instinct of just adding more to my VTI or similar.

Carpet_pissr · Post by **Carpet_pissr** » Tue Jun 21, 2022 10:30 am

Who wants to convince me to pick up some F (again) here? Currently trading at $11.5

LordMortis · Post by **LordMortis** » Tue Jun 21, 2022 4:43 pm

Carpet_pissr wrote: ↑Tue Jun 21, 2022 10:30 am Who wants to convince me to pick up some F (again) here? Currently trading at $11.5

I still think F is a $17 stock. How long it will take to get back there? What happens when the company splits into blue oval and Model E? I have no idea. So, no, I wouldn't buy here but I also wouldn't sell. I like the idea of buying F at $11.5 but they have hurt me too much, they aren't a growth stock, and they are putting their capital into growth (and labor) anyway. If it goes below $10 again, then if I were still putting money in, I'd be thinking about it.

Carpet_pissr · Post by **Carpet_pissr** » Tue Jun 21, 2022 6:43 pm

They just had so many hits from all over in the course of about three weeks, just wondering if market is overreacting and it’s oversold.

I’m much less concerned about the Ford-specific problems than I am with the broader market stuff like what will sky high interest rates (and super low inventory) do to new car sales.

LawBeefaroni · Post by **LawBeefaroni** » Tue Jun 21, 2022 8:05 pm

I still have a lot of F so I don't see buying right now. There are some others I'm adding on weakness. DSKE, T, MSFT, DUK (bought some today). Also looking at getting back into DIS and TGT.

Carpet_pissr · Post by **Carpet_pissr** » Mon Jun 27, 2022 2:54 pm

Welp, I should probably re-consider my absurdly oversized investments in the psychadelics space. Once the Gileadan Gestapo gets a whiff of this, it will all be shut down (again). The apparent cultural/social longing for the 1950's probably includes the whole hippie vs conformists battle as well, and we know how that ended:

"Fortunately, a growing database from prior large-scale survey-based studies have provided insight into a wide range of associations either unexplored or only hinted at in clinical trials conducted to date (18). Taken as a whole, these studies provide convergent support for findings from clinical trials, including that psychedelic use (either lifetime or prospective) is associated with increased emotional well-being (19–26), reduced harmful substance use/misuse (i.e., illicit drugs/tobacco/alcohol) (27, 28),
a tendency toward liberal political views
and an enhanced sense of connection with nature (29, 30). These effects are reliably associated with the occurrence of various types of transformative mental states (e.g., mystical, emotional breakthrough, insight-type) during the acute psychedelic experience that have also predicted outcomes in clinical trials (6, 9, 11, 22, 31–33)."

Conclusion if you don't want to read the whole thing:
"Consistent with findings from clinical trials (3–6, 9–13), and other survey-based studies (19, 23, 26) psychedelic use in our population was associated with large effect size reductions in depression and anxiety and marked improvements in emotional well-being. These benefits increased with self-reported psychedelic usage, but even participants with a single life-time psychedelic exposure reported improvements in mental health."

https://www.frontiersin.org/articles/10 ... ime%20use.

Carpet_pissr · Post by **Carpet_pissr** » Thu Jun 30, 2022 10:51 am

There goes the last of the cash I was holding. Just blew the last wad to add to an existing Fidelity Real Estate ETF I have.

LawBeefaroni · Post by **LawBeefaroni** » Thu Jun 30, 2022 11:58 am

I sticking to the plan. Adding 1-2% per week on drops.

Put some beer money in DWAC puts.

LordMortis · Post by **LordMortis** » Thu Jun 30, 2022 12:04 pm

Still too heavily invested. It's long since too late to pull more money. The bright side is I still make covered call money and dividends, even as my portfolio has lost nearly 1/3rd of its value from its October 2021 high. The money I take in is roughly half of typical monthly expenses... before taxes... I don't even look at my 401K. I probably should.

I've drastically reduced my covered call asks, which could bite me hard if the market turns around quickly. At the same time, if I didn't drastically reduce them, then I'd get nothing, all the while watching drain.

Cashwise, I still have shy of two years living expenses before I have to move things around, assuming inflation doesn't go full tilt, I have no disasters, and my eventual need to pay for health care can stay at about $700 a month until I move from COBRA to the ACA. Health care remains my largest future scary unknown. The current R&P situation makes it even more scary.

malchior · Post by **malchior** » Fri Jul 01, 2022 6:25 am

I was just looking over some of the latest data and I think they'll declare that a recession began in Q1. It's been a relatively shallow dip if the GDP numbers don't get revised too heavily. The bad news is demand destruction has finally come to town. The PCE also come in indicating price pressures are easing. We will see if they can soft land it or will they raise rates too fast/high and overcorrect. Fun times.

The upshot is I'm going to commit extra cash to I Bonds instead of extra debt reduction. It doesn't make much sense to throw extra cash at a mid-3s mortgage now.

LordMortis · Post by **LordMortis** » Wed Jul 13, 2022 12:22 pm

Checked my I Bonds this morning. Glad I bought them. I may have to break down and get more next year if this continues. Currently paying 9.62%.

That's not saying good things about the value of the rest of my money as it slowly hemorrhages in securities.

LordMortis · Post by **LordMortis** » Tue Jul 19, 2022 9:45 am

Oh wise ones of the Conclave. My GSK just dropped 20%. They seem to have spun off a new company HLN. I don't seen anything that speaks to how this affects me but I do see this in the TD news feed for GSK

Europe's biggest listing in a decade, Haleon, started trading on the London Stock Exchange on Monday. Haleon in the consumer-health business spinoff of GSK . The combined price of Haleon , 331.7 pence, and the remaining GSK, 1,383.40 pence, of 1715.10 pence, compares to GSK's Friday close of 1,719.20 pence. Haleon (HLN.LN) will start trading on a when-issued basis on the New York Stock Exchange on Monday, with full trading slated for Friday.

So if I own 100 shares of GSK before this change, what will it mean to me, presumably on Friday?

MandA really has been doing a lot of unexpected things to my portfolio in the last two years.

Edit: NM

https://www.cnbc.com/2022/07/18/gsk-spi ... ecade.html

“Ultimately the market is going to decide what the value of the company is, certainly on Day 1 of trading, and for the long term” Brian McNamara, CEO of Haleon told CNBC Monday. “This is a business that will create value for shareholders in the short, long and medium term.”

With the split complete, all GSK shareholders receive one Haleon share for each GSK share they own.

LawBeefaroni · Post by **LawBeefaroni** » Tue Jul 19, 2022 9:56 am

It's a pretty standard spin off. They valued HLN at 20% of GSK.

I haven't looked into it to see if this valuation makes sense.

LawBeefaroni · Post by **LawBeefaroni** » Tue Jul 19, 2022 10:58 am

Here's what I have been watching and buying:

LAND (this goes ex div Thur so expect a 16% or so drop)
GPRO
DIS
DSKE
DUK
T
MSFT
TGT
BA
AMZN
GOOGL (over GOOG)

LawBeefaroni · Post by **LawBeefaroni** » Thu Jul 21, 2022 10:30 am

Buying T at $18.50.

LordMortis · Post by **LordMortis** » Thu Jul 21, 2022 5:02 pm

Like F, no matter how tempting I won't let them hurt me any more. I have my shares. I sell my calls. That's enough for me... Too much really. That WBD spin off hurt me.

Carpet_pissr · Post by **Carpet_pissr** » Thu Jul 21, 2022 9:49 pm

LordMortis wrote: ↑Thu Jul 21, 2022 5:02 pm That WBD spin off hurt me.

Same. I had DISCA before the spinoff (which was already a terrible call), and just hung on because...reasons? Bad call made worse. It might be ok in a few years.

LordMortis · Post by **LordMortis** » Fri Jul 22, 2022 10:53 am

LordMortis wrote: ↑Tue Jul 19, 2022 9:45 am Oh wise ones of the Conclave. My GSK just dropped 20%. They seem to have spun off a new company HLN. I don't seen anything that speaks to how this affects me but I do see this in the TD news feed for GSK

Europe's biggest listing in a decade, Haleon, started trading on the London Stock Exchange on Monday. Haleon in the consumer-health business spinoff of GSK . The combined price of Haleon , 331.7 pence, and the remaining GSK, 1,383.40 pence, of 1715.10 pence, compares to GSK's Friday close of 1,719.20 pence. Haleon (HLN.LN) will start trading on a when-issued basis on the New York Stock Exchange on Monday, with full trading slated for Friday.
So if I own 100 shares of GSK before this change, what will it mean to me, presumably on Friday?

MandA really has been doing a lot of unexpected things to my portfolio in the last two years.

Edit: NM

https://www.cnbc.com/2022/07/18/gsk-spi ... ecade.html

“Ultimately the market is going to decide what the value of the company is, certainly on Day 1 of trading, and for the long term” Brian McNamara, CEO of Haleon told CNBC Monday. “This is a business that will create value for shareholders in the short, long and medium term.”

With the split complete, all GSK shareholders receive one Haleon share for each GSK share they own.

... And GSK just did a reverse split and I was charged $80 for the privilege and I no longer have shares in such a way that I can do covered calls without buying more.

HLN has already lost 25% of it's M&A value. Thanx.

LawBeefaroni · Post by **LawBeefaroni** » Fri Jul 22, 2022 11:16 am

GSK consolidated shares to match pricing before the merger so pre and post HLN could be compared apples to apples. Strikes me as unnecessary but there it is.

pr0ner · Post by **pr0ner** » Thu Jul 28, 2022 8:41 am

Since F is popular here, they killed it on their earnings report and also announced a dividend increase. Shares are up 6.6% in pre-market trading.

malchior · Post by **malchior** » Thu Jul 28, 2022 8:54 am

FWIW there are some really interesting readings so far this morning. Real GDP shrank a little but we have already seen some companies smash their estimates and others unexpectedly miss. It still really feels like an economy that is sloshing around. I'm still dribbling in cash into the market (only $400 a month now) but I'm loading up on QS at the moment.

LordMortis · Post by **LordMortis** » Thu Jul 28, 2022 9:29 am

pr0ner wrote: ↑Thu Jul 28, 2022 8:41 am Since F is popular here, they killed it on their earnings report and also announced a dividend increase. Shares are up 6.6% in pre-market trading.

Yeah! F is worth more than $13, though I'm still to heavy in them to ever buy more, even if I were in buying rather than selling position. I still put F as a solid $17 income stock with the ability to move forward. I don't put more value in their potential until it is realized, as they have squandered that potential too much in ever since the hybrid Escape was first put on the market, in what, 2010?

LawBeefaroni · Post by **LawBeefaroni** » Thu Jul 28, 2022 9:33 am

LordMortis wrote: ↑Thu Jul 28, 2022 9:29 am
pr0ner wrote: ↑Thu Jul 28, 2022 8:41 am Since F is popular here, they killed it on their earnings report and also announced a dividend increase. Shares are up 6.6% in pre-market trading.
Yeah! F is worth more than $13, though I'm still to heavy in them to ever buy more, even if I were in buying rather than selling position. I still put F as a solid $17 income stock with the ability to move forward. I don't put more value in their potential until it is realized, as they have squandered that potential too much in ever since the hybrid Escape was first put on the market, in what, 2010?

They're executing. Wall Street is giving them a multiple under 5. Shrug.

Already lost half the premarket gains 3 minutes after the bell.

LawBeefaroni · Post by **LawBeefaroni** » Thu Jul 28, 2022 9:39 am

Oh, and a friend of mine just got a new Bronco. Took it for a drive last night. Very nice but not really my cup of tea.

LawBeefaroni · Post by **LawBeefaroni** » Thu Jul 28, 2022 10:24 am

DSKE moving.

LawBeefaroni · Post by **LawBeefaroni** » Mon Aug 01, 2022 10:23 am

Held some GOVX over the weekend. Mostly out now, good for an opportunistic flip. Riding the remaining 1,500 "free" shares.

BA been on a nice run the last month or so.

Carpet_pissr · Post by **Carpet_pissr** » Mon Aug 01, 2022 1:08 pm

LawBeefaroni wrote: ↑Mon Aug 01, 2022 10:23 am Held some GOVX over the weekend. Mostly out now, good for an opportunistic flip. Riding the remaining 1,500 "free" shares.

BA been on a nice run the last month or so.

Wow, how long have you had BA? Still holding the original shares?

LawBeefaroni · Post by **LawBeefaroni** » Mon Aug 01, 2022 2:43 pm

Carpet_pissr wrote: ↑Mon Aug 01, 2022 1:08 pm
LawBeefaroni wrote: ↑Mon Aug 01, 2022 10:23 am Held some GOVX over the weekend. Mostly out now, good for an opportunistic flip. Riding the remaining 1,500 "free" shares.

BA been on a nice run the last month or so.
Wow, how long have you had BA? Still holding the original shares?

I fortuitously sold most of it in Jan 2020 when I got sick of their handling of the 737 Max issues. I've traded in and out since, down to a token amount right now.

LawBeefaroni · Post by **LawBeefaroni** » Tue Aug 02, 2022 9:51 am

LawBeefaroni wrote: ↑Mon Aug 01, 2022 10:23 am Held some GOVX over the weekend. Mostly out now, good for an opportunistic flip. Riding the remaining 1,500 "free" shares.

All out at $3.42, left a bit on the table holding overnight. Great trade, about 36% gains when all said and done but GOVX is a turd.

pr0ner · Post by **pr0ner** » Thu Aug 04, 2022 11:04 pm

Fucking hell. AMC is issuing a dividend in the form of preferred shares that will trade under the ticker APE.

Carpet_pissr · Post by **Carpet_pissr** » Thu Aug 04, 2022 11:31 pm

The dangers of holding shares knowing a merger is coming ‘just to see what happens’: DISCA>WBD

Fuuuuuuuuuuck.

LordMortis · Post by **LordMortis** » Fri Aug 05, 2022 6:52 am

Carpet_pissr wrote: ↑Thu Aug 04, 2022 11:31 pm The dangers of holding shares knowing a merger is coming ‘just to see what happens’: DISCA>WBD

Fuuuuuuuuuuck.

Or of not just dumping T before or T and WBD after. And now I've got the same problem again with GSX and HLN. Of course I couldn't dump GSX and HLN, even if I had the will to do so, because they locked down trading for a week in the US after the spin off.

malchior · Post by **malchior** » Fri Aug 05, 2022 6:59 am

pr0ner wrote: ↑Thu Aug 04, 2022 11:04 pm Fucking hell. AMC is issuing a dividend in the form of preferred shares that will trade under the ticker APE.

I just read the scheme here. And it's flat out ridiculous.

Formix · Post by **Formix** » Sat Aug 06, 2022 6:15 am

My portfolio in general is up 18% this year, which I'm happy about. I just hope CRLBF and QS turn around, they're my biggest dogs down 62 and 70%....ugh. I wish I understood more of what y'all are doing with puts and options, it seems like I'm just playing in the sand watching the waves while y'all are playing chess.