Sunday, July 22, 2007

Question About Verigy, Ltd.

Q: Recently, a reader named Javier asked why do I own the undervalued IMOS and most over valued VRGY?

A: The reason is that I received my Verigy shares as a special dividend from Agilent Technologies. Agilent spun off Verigy in a special dividend last November. An argument can obviously be made that I should sell my shares. The reason I have not sold is that the shares have doubled in price, and if I can stretch my holding period to greater than one year, I can lower my tax base.

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