1. I do allow for tax. It is not immediately payable, can be minimised but in the end it is only payable on profits and you are allowed to keep some.
Totally agree. Applies for all.
Your "freebies" are in reality trading profits that you have chosen to reinvest in buying more shares. Nothing revolutionary there. In reality though, only a percentage of each free share is yours, the other proportion is being accumulated for the ATO.
Therefore, given you continually advocate a specific trading approach to your "followers" it surely is an ethical necessity that you also be upfront about the taxation implications of this trading method. Some out there are not as savvy as yourself and may not have access to offseting losses, R&D expenditure etc
2. I doubt that TAS will pay tax for a very long time. Tax payable by TAS plays no part in my calculations for relative value. TAS will have a lot of past losses to offset against income.
This is a backdown on your previous argument where several months ago you contended that this would be a central consideration
3. My reasons for discounting the value of TAS have been stated numerous times and they have not changed. Here they are again; a.EDE is where the profits are to be generated. .
So? And hence also where the tax will be paid when these profits do eventuate.
b. Any attempt by TAS to use EDE funds will be closely scrutinised therefore to distribute EDE profits to TAS must only be on the basis that TAS owns shares in EDE. Therefore any distribution will go to EDE shareholders. Evenly in cash per share.
Exactly...TAS is a shareholder in EDE just as you or myself are. A dividend paid in future will be proportionally distributed to shareholders be it Nursery Inc or Tasman/Noble. That dividend may be franked 0% to 100%, reflecting the tax paid by EDE on its profit.
Reforms were brought in long ago that eliminated the double taxing of profits and Tasman can distribute these franking credits to its shareholders (ie, held as credit in franking account and asI understand it, distributable only in this way)
. c. In the possible case of a takeover it will be on a shareholding basis. This means that EDE shareholders get cash. TAS as a shareholder will get their share.
TAS as a majority shareholder has the power to determine the outcome of any takeover negotiations. Negotiating strength due to number of shares held ie, THE key stake. AND that it is the primary vehicle for those that will do any negotiations ie, the Solomons.
EDE shareholders (see b. above!) will proportionally receive the outcome of any offer, agreed; but to blatantly ignore the inherent dealmaking power that TAS holds is ludicrous.
TAS itself, rather than EDE could be the initial target in any takeover offer seeking to gain control of EDE. Could be argued that this would be the most strategic approach in that a premium paid for TAS initially would avoid having to chase down EDE minority holders prior to inevitable negotiations with TAS
d. TAS will get their share through Noble with some deductions before it is passed on to TAS. TAS does not own shares in EDE. Noble does and TAS owns Noble.
A total furphy that you keep repeating. Noble is a 100% subsidiary of Tasman in the same way that "EdenCrete Industries Inc" is/was a 100% subsidiary of Eden Energy; or the that the gas assets of Eden were held in 100% UK subsidiary prior to their sale.
If you have an alternative professional assessment please provide the full text
e. TAS is not obliged to pass on all the cash received to TAS shareholders. It couldn't possibly afford to do so as it has costs to cover.
..."couldn't possibly afford to"...tripe! The qrtly admin/retention costs of TAS relative to the value of its asset (s) is miniscule (~$200k vs $180 million+) and can be easily reduced further, or offset totally by divesting legacy assets
Noting also that Eden is under no obligation to pay dividends to EDE shareholders. In theory it could take a path whereby it reinvests all earnings in growing a global giant. Whichever path/strategy it takes will be reflected in the EDE shareprice and hence directly in TAS sp (eventually)
f. TAS has a record of considerable prospecting losses and has stated these are on hold pending the availability of finance for them to continue. The search for the elusive Eldorado will resume.
You are flying high on the investment decisions by the Solomons et.al, yet you conveniently fail to credit them with the ability to strategically make decisions & deploy $ based on the relative merit of each project. Eden Innovations is the Eldorado for TAS. ..this has been made abundantly clear. Any decision to channel resources to other projects would surely be weighed against directing it to further domination of the EDE share register.
Raving
TAS Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
