Looking to buy some more DWAC with the dip - looks like it's gone down to low $40's a few times and it's sitting at $50, now. For those that have advanced beyond crayon-eating, what's a good price to set the buy price.
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Looking to buy some more DWAC with the dip - looks like it's gone down to low $40's a few times and it's sitting at $50, now. For those that have advanced beyond crayon-eating, what's a good price to set the buy price.
My hunch, and that's ALL it is, anything under $50 is a massive opportunity.
Warrants man warrants. They are at 16.41 now, if they dip to 14 I am buying another 1k. 16.40+11.50 = 27.90 for a stock after merger. IF you are long term they are the best option. DWAC sitting at 50.49. 50.49 - 27.90 = 22.59 savings per stock purchase letting you get more warrants. I got 1k @ 20.09 and if it drops to 14 I am grabbing 1k more, making the investment roughly 17 per warrant with 23k due on the merge, long term thinking, YES.
Dips are great remember this stock has potential to easily go 300-500 if not 1000.
THIS IS NOT FINANCIAL ADVISE. THIS is what I am personally doing.
I bought DWACW early on but I'm totally new to this stuff. Was just glad to get a decent price. Do you know if I have to take action on the warrant or something later on? Or will it be automatic, broker handles it kind of thing?
A warrant is a promise that you can buy the post-merger stock for $11.50.
30 days after merger, you put in the $11.50 in your account for each warrant you have, then call up your broker and tell them to exercise the warrants. This consumes the $11.50 per warrant and makes them into stocks.
(This is because the warrants can't be exercised until either 12 months after the SPAC was created, or 30 days after the merger, whichever comes later, and we're past the 12 months now.)
This is also a "taxable event". The price of the stock minus the price of the warrant minus the $11.50 is "ordinary taxable income".
So if you take your $15 warrant + $11.50 and convert it to a $50 stock, the IRS says "This guy just made $23.50 in income" and you gotta pay tax on that "income".
It's the one downside on getting in for the long haul so cheap through warrants. Because of the tax implications, you will want to exercise on a dip in the target stock if possible.
(Other than the possibility the SPAC fails to merge and warrant holders are left dry. But there's no way DWAC and TMTG won't merge.)
Great Info! You can purchase the Warrants in a Roth or Traditional IRA to avoid taxes.
If I've already bought the warrants with my normal brokerage account then it's too late, right?
I believe you would have to sell and repurchase in IRA account since they are different types of accounts. Moving forward I would open an IRA account for future trades, why pay taxes on gains. You can contribute $6,000 a year under 50 and $7,000 over 50. The Roth IRA makes sense for most people, depending on income https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2021, if you are a high income earner Back Door Roth could be an option.
I didn't know that IRA trades weren't taxed, I only briefly used a Roth for deposit when I was doing contract work. I know that retirement withdrawals are not taxed, since it's after-tax money. One reason not to go that route though, is that I'm penalized for withdrawing before retirement, right? So if I want to use my investments for a down payment on a house in 5 years, then doing it in a Roth would be a bad idea.
Depends, should not be a problem for taxes. Roth IRA after tax dollars so the growth is tax deferred until 5 years, Traditional IRA pre tax so the money grows tax deferred until retirement. Both IRA's have exceptions to withdrawal money for purchase of home, I think the cap is $10,000. Roth IRAs you can take out principal at any time since the money is after tax, if you contribute $6,000 for 5 years you can take out $30,000 with no tax consequences, on top of that after 5 years having a Roth open all money can be taken out with no tax consequences. https://www.investopedia.com/ask/answers/05/waitingperiodroth.asp I'm not an accountant and giving general info, if the money is for a house any investment can lose money when you need it. With inflation at 7% and earning nothing at banks investing is almost only option to stay ahead of inflation.
Extremely helpful. Thanks!!
I jumped on the band wagon at 25 per share. I'm in it forever! Also... Phunware (NASDAQ:PHUN) stock is running higher on Thursday thanks to investors connecting the company to Digital World Acquisition (NASDAQ:DWAC). Digital World Acquisition is the special purpose acquisition company (SPAC) merging with prior President Donald Trump's social media company to take it public.Dec 2, 2021. May purchase RMBL tomorrow.
48.50 support line is solid.
<50, >48.
My prediction was correct yet again, lol.
At the recent lows or just below.
In my opinion, now.