Advice needed.....

[ProPokerPlayer]

Family is heavily 1 sided on Royal Dutch Shell....stocks have been tied up in a court case that went on 4 years. Settled now and looking to diversify.
The stock is back up to a 52 week high as are most all oil stocks BP not included. BUT still its nowhere near its 3 yr high . its been 45 awhile, now up to 60 but once traded at 90.....Family doesnt know beans from shinola about investing and im just a notch above them. They insist on hanging on till it gets back up ....i kinda think it'll be quite sometime if ever that it goes back to 90....

Your thoughts on the stock, oil stocks in general ?????

 

[tiznow]

always bad to have all your eggs in one basket if you talking a huge chunk of change.....

as you've seen with BP, C, AIG, GM, shit happens........

 

[SmallDaddy]

What time frame are we talking about here? If really long term, then I believe oil will go upto 150 bucks a barrell, eventually

Or you guys could start selling a bit every year and take the losses out of your taxes

 

[tiznow]

oh yeah cap gains tax going up after this year if that's an issue another reason to dump it now

besides equity bear overall returning

 

[couch_potatoes]

Diversify. One holding is an invitation to disaster.

 

[LineTamer+]

What is cost basis? If a family held stock I would imagine it has low basis...

If so, I would advise selling a portion now and repurchasing in 30 days to increase your cost basis...as tax rates are only going up from here...

That is of course if you want to keep holding the stock....but as anyone would tell you, best not to have your eggs in 1 basket.

 

[ProPokerPlayer]

Thx guys.......I would like to move some of it but 1 thing that does keep me from pushing it too hard is the stock pays a pretty big dividend 4 times a year....So even if the stock price doesnt go up we still realize some profit on it. Plus its always possible that i could end up putting it in a stock that just barely gos up or breaks even and we lose the dividend payment.
Having the CEO of the New World Order as the stock manager gives me a little more confidence as well........if u got to have all ur eggs in 1 basket it might as well be his....lol

 

[ProPokerPlayer]

What is cost basis? If a family held stock I would imagine it has low basis...

If so, I would advise selling a portion now and repurchasing in 30 days to increase your cost basis...as tax rates are only going up from here...

I didnt catch wat u were saying at 1st but this is something i want to look into today. Cost is very low as it was all employee bought thru a retirement plan back in the 60,70 and 80's.

Another thing i need to look into is the taxes.. They are all in the name of a 75 yr old family member. Im sure there is some kind of tax benefits between her having them and someone below retirement age owning them.
I knew id find a few ideas in here......Thxxxxxx

 

[SmallDaddy]

If the stock was accumulated that long ago, why would you even think about selling?

The dividend has to be sick, no?

 

[LineTamer+]

So the stock is inside an IRA or company sponsored plan? Or some other type of qualified plan? If so it would be taxed at the owners tax rate as ordinary income. You can't just transfer qualified (pre tax) money to someone else. Doing that in any form would be a taxable event. Outside of the present owner passing away...and her beneficiaries inheriting it that is.

If it was bought with pretax dollars, then there is no basis in the stock and it is 100% taxed once you take the money out of the plan that it is currently in. You may have other investment options in side the current plan? Check on that, or transfer the money out to a rollover IRA then you can buy anything you want with it. Other stocks that pay nice dividends if that is what you are after.

 

[LineTamer+]

If the stock was accumulated that long ago, why would you even think about selling?

The dividend has to be sick, no?

regardless of timing,,,looks like the current dividend is 6.3%. When you bought it doesn't change the dividend. But the % will change with fluctuations in the price per share.