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tax incentives - priced into stocks?
Posted by: kirrct (IP Logged)
Date: November 4, 2009 05:39PM
It appears that the extension/expansion of the home buyer credit and the extension of the NOL carryback period from 2 to 5 years will be enacted by veteran's day. The extension of the home buyers credit has been widely reported and arguably expected for 2-3 months. the NOL carryback, however, has not received widespread coverage in the news (admittedly, big news earlier this year before it was limited to firms with less than $15 m in revenues). according to my math, this provision could mean a refund for HOV of $139 million and over $1 billion for ABK. The NOL is currently included in deferred tax assets for both companies, however, HOV has a full valuation allowance such the net asset on their balance sheet is $0. it is easy to conclude that the expected value of these tax provisions is priced into the stocks. if so, what is that value for HOV? ABK? _ Stocks Discussed: HOV, ABK,
Re: tax incentives - priced into stocks?
Posted by: Sivaram (IP Logged)
Date: November 5, 2009 06:24PM
Tax is likely priced in but who really knows. Ambac CFO said they may save something like $700m(?) so it is public knowledge by now. Not enough to save the firm, unfortunately. Real estate continues to disintegrate... --------- Check out my investing blog - contrarian with a macro focus and a value investing tilt: Can Turtles Fly? A Contrarian Investing Blog. Stocks Discussed: HOV, ABK,
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