Hi Kitstar,I hope that our re-rating to fair value comes sooner...

Hi Kitstar,

I hope that our re-rating to fair value comes sooner then the Qtr, but I am sure it will come.

Maybe JPmorgan is still dumping shares on the market and is the culprit, time will tell.

Back to the dividend, EXS has one more option next to franked dividends and partly franked dividends or a share buy back.

They can ask the ATO for a tax exemption with a return of capital to shareholders which, ones approved by the ATO will give us the money upfront without tax payable.

If say EXS gives us 28 cts per share as a capital return then we would have to add the 28 cts to our costprice of the shares we have, and will only pay tax on the total amount once we sell our shares.

So if we would have held those shares longer then 12 months we would get our normal tax benefit.

Biota gave us a capital return in this way and it was extremely tax effective for shareholders as well as the company did not have to fork out 30% company tax, hence be able to give us the full amount of surplus cash.

I add here a link from OZ minerals who also had a capital return and it explains the tax implications for shareholders.

Overseas shareholders and share traders are treated different with a capital return and this may partly explain why we have the sell off.

Read the link below.

jojo

http://www.ozminerals.com/Investor-Information/ATO-Ruling-Proposed-capital-return-not-a-dividend-for-Australian-tax-purposes.html?category=home