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If it goes to 21p tomorrow, there'll be a lot of tent poles here.... and so a few happy wives.
(Sorry, couldn't resist!)
@mushroom "18.3p or 20.1p, come on guys! Tut"
Hey, it's not a weekend but it's late evening, silliness is fair game!
Timing could be based on the Australian financial year. The 2019/20 year just ended on 30th June and the new financial year started 1st July. Selling from 1st July means the capital gain is taxed in the new financial year. The timing by Gervaise and Callum suggests this Is their strategy.
No no, I can tell you officially that it was a misprint. It was meant to read 'the change is up more than a tent pole'. As we all know, a tent pole is very long and 'open at height'.
18.3p or 20.1p, come on guys! Tut
Stock options granted after July 2015 are still subject to income tax when the option is exercised. No tax is enforced on the grant date of the ESS, assuming the taxing point is deferred to the vesting or exercise dates. ... Tax is paid upon assessment of annual income tax return.
@Enrico ""Year-to-date change: up more than tenfold from 1.83p on January 2."
So, it's official now: we're going to finish above 18.3p tomorrow! :-)"
Tenfold of 1.83p is 18.3p. But "up tenfold" means up 18.3p, therefore, 20.1p. Obviously they looked at 12.0p (because that's now the eternal SP), accidentally transposed it, ended up with 20.1p, and said, "Wow, that's up 18.3p, up ten-fold." This is my theory and I am sticking with it, LOL.
But if the SP goes to 20.1p tomorrow, I'll retract!
@hyrdo "My wife's best mate is a tax accountant in Australia.. I'll run this all by her."
Brilliant! Top man! But you'll need to buy flowers for her and explain to him why!
Hydro that would be great. If I am right it’s a huge signal from the management that not only do they think the sp is going much higher but also they could get taken over by mid 21 onwards.
In addition interesting that yesterday was start of their new tax year.
TMT - Top post. Tax directed (optimal timing to limit tax hit) Director selling as opposed to pessimistic Director selling
TMT. I didn’t know the one year rule. That makes it an even better signal. Good find.
They are as good as saying, we think this goes much higher. Lovely.
Jerry, TMT, I didn’t personally have any concern regarding the recent director dealings but it is good to be able to identify a sensible reasoning behind them and your posts both make sense, thanks for the explanations.
@Jerry "I think a lot of people are missing quite a good bullish signal on these Director option exercises"
A couple of weeks ago I was intrigued by the fact that GH was exercising options early. It did not make any sense to me, why should he do that? I got a lot of flack for talking about it here because people thought I was focused on him selling some of the shares, but it was the early options exercise that I wanted to understand.
As best as I can understand from Australian tax laws, you are correct. It is advantageous for them to exercise before the share price skyrockets, if it is going to.
The other reason under Oz tax laws to exercise early is that if employee shares are held for a year before being sold, only 50% of the capital gains are taxable. So if they are thinking maybe the company will be bought out sometime late 2021 (after finding lots of gold in Scallywag, maybe?), then those shares will incur less capital gains tax by the options being exercised now.
So it may be that they see a potential future buyout and want to get the shares into their names now as a result to reduce future capital gains tax.
Either way I see the early exercise as strongly indicative of their belief in the future. It's not just "Oh this is a good deal, I can get these assets for a lot less than the current market value." If it were that, they'd turn around and sell them all. That's not what's happening. This is "we think some very good things are going to be happening and since that's what we think, there are good tax reasons for us to go now."
Hi Enrico. Please stop deramping, only 18.5p. I am all for £1.80. ATB Speedy
Hi Jerry. I tried google, Australian tax laws and fell asleep at "A". ATB Speedy
tick..............
;)
Alliance News have just posted a piece of news about these directors' dealings. My favourite bit is this:
"Year-to-date change: up more than tenfold from 1.83p on January 2."
So, it's official now: we're going to finish above 18.3p tomorrow! :-)
I think a lot of people are missing quite a good bullish signal on these Director option exercises. Most of these options have a year or two still to run, but they are exercising them early. Why?
IMHO it’s because the way the Aussie tax system works. They don’t have a cgt as such but all gains are lumped into your income and so increase the income and therefore the tax due and possibly push you into a higher tax band. If you can minimise the gain on the option exercise you therefore you minimise the tax due now. So why would they exercise early? Cos they think/know/believe that the share price will be substantially higher if they wait, thus increasing the tax to be paid if they wait.
It’s also interesting to note that the two U.K. based directors haven’t exercised any of their options early, cos we have a different tax system.
So if you look at the director share sales as being bearish I think you are completely missing a hugely bullish signal of GH and CB exercising early.
Happy to be corrected by anyone who has first hand knowledge of the Aussie tax system, as what I have learnt is from auntie google.
More big AHT's
BR - that’s got to be a ‘Birkin’ for Mrs H then.
Mr H probably needs to pay for his new car and buy Mrs H a new handbag or something
I'm thinking absolutely nothing! No concern here, whatsoever!
Tomorrow is just another normal day for GGP and they'll be largely forgotten even before the opening bell!
Just checked in. Been busy all afternoon. I have a large holding here. What's the thinking re the director sales?