Wednesday, July 23, 2008
CINFIN admits defeat on Fifth Third
Guess what - they sold half today - and the explanation makes no sense. They want to reduce their exposure to low-dividend stocks.
What is remarkable about the sale is that they are selling 480 million in stock after the price collapse - and they still have to pay 120 million in capital gains tax. That is reflective of how good a stock 53 was before it became bad...
And having to pay 120 million in capital gains tax is a high quality problem - but it would have been a higher quality problem to have paid 600 million in tax a few years ago!
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