Q: I received shares of lumine but i have been rather lax regarding them, since i already had a lot of csu and toi. But, tou mentionning it the past few days has piqued my interest. So, i have a couple of questions. My account indicates that I have about a million and a half percent profit! That can’t be right. Is there something that i don’t know happening here?
Thanks for yourexcellent business, as usual
Thanks for yourexcellent business, as usual
5i Research Answer:
Because of the corporate structure of CSU and its ownership of LMN shares through convertible preferreds, upon the LMN spin-out the tax basis for LMN shares was essentially $0. Thus, many accounts will show a very large percentage gain from this adjusted cost base. LMN is down 8% this year and up 64% since its listing in the 1Q last year.