advice on buyout

[olrac_ed]

I own a stock, MEND, which has been bought out by J&J. Should I sell on the open market before the buyout date or wait for the cheque from J&J? Any tax advantages either way??

Thanks in advance.

[riverbabe]

I own a stock, MEND, which has been bought out by J&J. Should I sell on the open market before the buyout date or wait for the cheque from J&J? Any tax advantages either way??

Thanks in advance.

FWIW, JMHO, and all that: Depends on how quick you want that 23.40. It will be a capital gain in 2010 with a 15% tax. I usually put in a GTC bid at under the buyout price and put my money elsewhere. In this case, would you be happy with, say, 23.35-ish? Your choice. Do you have a good place to put the cash? Still a capital gain taxwise. Good luck, and congrats.

[mrmarket]

FWIW, JMHO, and all that: Depends on how quick you want that 23.40. It will be a capital gain in 2010 with a 15% tax. I usually put in a GTC bid at under the buyout price and put my money elsewhere. In this case, would you be happy with, say, 23.35-ish? Your choice. Do you have a good place to put the cash? Still a capital gain taxwise. Good luck, and congrats.


Excellent advice, River.