Forum Topics GOR GOR GOR valuation

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OxyBBear
Added 7 months ago

@Bear77 Thanks for the summary of the takeover offer for GOR. LIke yourself I entered GOR yesterday mainly for the potential arbitrage and of the 3 main risks you outlined, risk number 2 is the only one I really have any concern about although it is comforting to know that you are bullish on NST. Unfortuantely my super is not in pension phase so I won't be able to make full use of the franking credits.

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Bear77
Added 7 months ago

No worries @OxyBBear my own Super is in accumulation phase also (for one more year), however where I am paid unfranked dividends, tax is deducted from my cash balance and when I am paid franked dividends no cash is deducted, so at the very least you are not paying any tax on the Spec Div from GOR and if as I expect the total received from GF for my GOR shares is a little less than what I paid for my GOR shares yesterday - because GF will be deducting the 35 cent dividend from their cash paid to GOR shareholders for their shares - then there is a potential capital loss available there to offset some capital gains elsewhere. That's the way I'm thinking about it, because I've been locking in a number of capital gains this year as I've been trimming my gold company positions as they rise further and further, so I could use the offset, particularly as in real terms I'll still be in front because of the fully franked dividend received.

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