WDRP in an IRA or Roth IRA

We have no idea where the price per share (pps) of WDRP is going to go to.  In my opinion, it will not be at .03 for long.  Once we: get the long awaited efficiency numbers, Wanderport confirms a product for the industry trade show, and the new website is unveiled, this pps could go up to 07-10 cents quickly.  From there, if Wanderport introduces their many different products and turns into a bonafied manufacturer of appliances to the mass public, we have no idea how high the pps will go.  My reason for bringing this up is that I believe there is an opportunity for a lot of money to be made, which definitely calls for tax planning with your tax advisor.  How long you own your shares and what kind of account you hold them in are two important things to think about.

Ask yourself, how you want to be taxed upon selling your shares? 

Long Term and Short Term Capital Gains are determined by how long you owned the shares before you sold them.  Should you sell within a year of buying the stock you will pay short term capital gains, which are your normal tax rate.  If you hold this for over a year then the long term capital gains rate is 15%. (in 2013 that long term rate goes up to 20%)  That one is pretty easy.

Deciding what kind of account you hold your shares in is important:

If you buy the shares in a Roth IRA you have used money that is already taxed.  The benefit is that when you are 59 1/2, you get to take distributions out tax free.  (If you are under 50, your Roth IRA contribution is lower than if you are over age 50.  So check with your accountant or financial advisor to make sure what is right for you.)  If you do this, don't plan on taking a distribution from this account until you are at least 59 1/2.  An example of this would be: Buy 50,000 shares, at .03 cents per share this would be a Roth IRA contribution of $1500.  If in the future this share price went from three cents (.03) to fifty cents (.50) your $1500 would now be $25,000.00.  You would now have $23,500 in gains which would be a tax free distribution at the proper age (59 1/2). 

If you have been buying these shares in a Traditional IRA, you have the option of converting that Traditional IRA to a Roth IRA (Roth Conversion).  Your Traditional IRA money has not been taxed yet.  Whether you have your own Traditional IRA or you rolled over money from a 401k from a past employer, this money was put into the account tax free, and it grows tax free.  However, when you reach  59 1/2 and can start distributions, this money will be taxed at the proper tax rate for your income level. 

Should you do the Roth Conversion, your $1500 contribution from our last example, would be taxed this year at your current tax rate. (to be figured in your taxes at the end of the year)  Let's use a tax rate of 33% to make it easy.  That would be $500 dollars in taxes you would pay now.  No matter what the share price goes to this year, you pay the taxes on the amount your account was worth when you did the conversion, or again, for our example $500.  Now, lets imagine everything goes great with the company and the share price goes to fifty cents.  Your Fifty Thousand shares would now be worth $25,000.00.  Having done the conversion, you would have paid taxes on the $1,500, which was $500 and you can now take the money out tax free upon retirement.  If your money was in a traditional IRA and we used the same situation, the tax on your $23,500.00 in gains at a generic 14% tax rate would be taxed around $3,290.00.  In this hypothetical situation, you would save about $2,790 by Converting your Traditional IRA to a Roth.

Because of the possibilities of share price growth, I believe you could save a lot of money with the proper tax knowledge.  I am not a tax advisor, and this general discussion is not meant to be tax advice.  Use this information to talk with a professional tax advisor who knows your financial situation and can give you specific tax advice based on that. 

This Too Shall Pass

So September 13th has come and gone.  As far as Andrew going to talk with the AMF, that seems to have passed without much ado.  It seems as though the initial meeting was only to set a date for another occasion, which is some time in November.  So still we wait.  Something to note, however, is what is going to happen in the meantime.  As posted yesterday, Wanderport has committed to Dave Myers that he will have something to show at an Industry Trade Show in October.  This we know from the informal investor conference call (link at top of home page).  I believe there will be multiple press releases before the trade show, in addition to the outcome of the trade show itself.  That is all in October, before the November meeting with the AMF.  Once the microwave water heater is announced, the efficiency numbers are available and the new website is up and running, this all goes away.  There is nothing to look into anymore,  everything WDRP has been talking about in their PR's will be evident. 

Trade Show

In less than a month WDRP is planning on attending one of the Industry Trade Shows.  They have committed to Dave Myers of Utility Marketing that they will have something for him to show.  This means they are really close.  I also think this means there will be a PR very soon.  The reason for going to a trade show is to show what you have recently developed.  To do that in the most effective way possible, it is much better to have a buzz before hand, so the right people are looking for your booth before they get there.  If we do have that PR, then this share price will start to run.  In my opinion, we could get back to the 7 cent range very quickly and just keep going from there.  In addition to the show, there will also be many industry rags publishing this and creating a buzz.  We are very close!  Get your shares while you can.  If the Trade Show is next month, we may see a PR in the next couple of weeks.

New Transfer Agent

I just talked with Andrew at WDRP, and they have finished the changeover to New York Stock Transfer as the new Transfer Agent.  This move was made upon finding out about some unfortunate news in regards to the old transfer agent.  WDRP started the change over process immediately upon finding out about the hold placed on the former agent, and is now making this public upon finalizing the changeover.  This will soon be updated on Pink Sheets. 

Talked with the WDRP

I have been thinking more about my conversation yesterday with IR and I believe there are a few more things to note.  In my own line of work the question is often asked, "what do I need to be afraid of?" or "what is the worst that can happen?".  So that is what I asked.  The two obvious answers are: Robert Simoneau taking his invention elsewhere and/or the technology just not working.  In regards to the second, I didn't need too much more information because we know that they have moved forward with the development process based on positive evidence shown from tests already accomplished.  The first heat exchanger that Robert designed was successful enough for continuation.  In fact, in continuing the heat exchanger was made even better, for which they filed two more patents.  In regards to Robert Simoneau taking his technology and brains elsewhere, I was reassured with the information that Robert has signed another continuing contract well into next year.  This I am told is a standard way to operate.  Up to this point, they have signed multiple contracts continuing the process.  Robert has been extremely happy with Wanderport's business plan and how he feels it will move this product forward.  We are within a few weeks of the efficiency numbers, the new website and the announcement of the trade show.  Positive outcomes will no doubt move the price per share in the right direction and I hope you are ready.

Talked with Company

I talked with the company today and all is well.  Right now they are waiting for some of the parts to come in so they can put them into the unit and see where the efficiency numbers end up.  Seems like they may have those numbers come in and then open the website, but that is just a guess.  Wanderport is committed to the Trade show next month and is doing everything right now to move towards that.  The phone call lasted almost an hour and afterward I felt very comfortable, just as I always do.  This is taking more time than I hoped, and also more than they hoped.  But everything is moving along well and they are very excited of what is to come in the next two months. 

Could we see a PR today?

Today would be a great day for a PR.  Maybe it will be for the new website.  It would be nice to see some momentum going into next week. 

Silence Is Golden

Over the last two years I have been accumulating WDRP stock.  In this time multiple press releases have come out.  Some were more often than others.  After some of the longest of silences we saw the biggest upswing in the share price.  It has been over a month now since the last PR.  That could easily be because they just wanted to calm things down before the big push in addition to everything happening with the AMF.  Last we heard, they were getting things ready for the Industry Trade Show in October and that they would PR info on that before hand.  There is also the new website to roll out.  My feelings are that we will have this silence broken by news soon.  And after the first bit of news, we will see a more steady stream of pr's building up to the trade show.  I believe this train is getting ready to pull from the station!  All aboard!!!